Reform of 100-year-old trust law is big step forward, but detail is needed to get it right

That’s the view of the Delegated Powers and Law Reform Committee, which has today published its Stage 1 report on the Trusts and Succession (Scotland) Bill.

The Committee has welcomed the Bill - but in doing so it wants to see changes to clarify and strengthen some core provisions.

Trusts are a very common way of managing assets, and trustees rely on the law to guide them on how to manage their specific trust. The main current law on trusts dates back to the 1920s, and can be difficult to navigate. The new law aims to simplify this and make it easier for people to understand.

The Bill also covers succession law – in particular what happens when someone dies without leaving a will.

The Committee wants the Government to address issues around the power of trustees to make environmental, social or ethical investments; the duty of trusts to communicate with beneficiaries, and considering changes which could stop unlawful killers being executors for those they are accused of killing.

The Committee Convener, Stuart McMillan MSP said:

“The Committee, like those we took evidence from, is enthusiastic about the prospect of a new, modernised trusts and succession law. It’s a long time coming and will be warmly welcomed.

“But we must make sure that this new Bill stands the test of time. Witnesses raised a number of areas where the Bill could be clearer or lacks detail.

“Users of trusts and those affected by succession law come from all walks of life. They need a Bill that is easy to use, protects them and their loved ones, and simplifies the processes involved.

“We want the Government to look at these areas and make sure that the Bill works for everyone, particularly for members of the public who are involved in trusts or who find themselves navigating the death of a loved one without a will.”