The Trusts Act 2019 comes into effect on 30 January 2021. For the first time in 60 years, there will be major changes to existing trust law. The aim of this legislation is to create more transparency around trustee decisions, and to allow trusts to be run with more efficiency and clarity for all parties.
The Act imposes additional compliance duties for trustees including the requirement to provide basic trust information to each beneficiary, keeping core trust documentation, limiting the trustee exemption and indemnity clauses, and imposing mandatory and default duties on them.
Trusts will continue to have an important role in succession planning. If you haven't already done so, you should consider the reasons why your trust was created in order to decide whether these new obligations mean retaining your trust continues to be worthwhile.