The New Trusts Act 2019.

Its purpose is to make trust law more accessible and easier to understand. In many cases it codifies existing case law, while also introducing new requirements for trustees.

One of the premises of the new Act is to make trust law more accessible and easier to understand. In many instances it is codifying current case law rather than introducing new concepts.

One of the most interesting parts to the new Act is the requirement to provide certain information to beneficiaries. The new law is a combination of existing case law and new requirements on trustees. It also follows the growing trend of giving more power to those perceived to have less power.

In the same way that the law has moved to protect the perceived weaker party in landlord/tenant relationships and employer/employee relationships, the new Trust Act goes someway to giving greater power to beneficiaries.

The reason for the new law is that the beneficiaries are really the only ones that can hold trustees to account. They can only do that if they are entitled to certain information regarding the trust. The law creates a presumption that trustees must provide all beneficiaries over the age of 18 with “basic trust information.” This includes confirming that they are beneficiaries, naming the trustees and providing their contact details, as well as supplying a copy of the trust deed (and any variations). Beneficiaries are also entitled to request and receive additional “trust information” where it is needed to enforce the trust.

Other “trust information” is defined as being the kind of information that the beneficiaries will need to enable the trust to be enforced.

What Is Considered “Trust Information”?

This kind of information includes things like financial statements for the trust and may extend to valuations of trust property, legal and taxation opinions sought by the trustees and resolutions of the trustees. It does not extend to the trustees’ reasons for their actions.

This of course may be a problem in many trusts where it was never intended that the beneficiaries even know that they are beneficiaries. It may also be that there is a very wide class of beneficiaries and it was never intended that the people named would ever actually benefit. This is often the case with pre-2002 trust deeds where there are wide classes of beneficiaries which often extend to the spouses and de facto partners of beneficiaries.

When deciding whether to provide information, trustees must consider factors such as:

• The nature of the interest held by the beneficiaries and the likelihood of the beneficiary receiving a future distribution.
• Whether the information sought is subject to confidentiality.
• The intentions of the settlor at the time of the establishment of the trust as to whether beneficiaries would be given information.
• The age and circumstances of all of the beneficiaries of the trust.
• The effect of giving the information on the trustees, the beneficiaries, third parties and family relationships.
• The practicality of giving such information.

As a result, some areas remain open to interpretation and depend on the facts of each case.

Reviewing Your Trust.

The Act highlights the importance of regularly reviewing your trust to ensure it remains fit for purpose. Steps to consider include:

Review the trust deed

check the beneficiaries named and whether they still align with your intentions.

Consider variation powers

determine whether the deed allows changes to be made if required.

Update the memorandum of wishes

clearly state your intentions for how trust assets should be managed and distributed.

Review trustee resolutions

ensure these record decisions without including unnecessary reasoning.

Trusts are not static; they need to evolve with changes in the law and your personal circumstances. Regular reviews will help ensure your trust remains robust, compliant, and aligned with your goals.

If you feel you could use some specialist advice, don’t hesitate to contact the Trusts & Wealth Protection Team.