Trusts Act 2019: Disclosure of information to beneficiaries
The Trusts Act will require trustees to disclose information to beneficiaries. The purpose is to ensure beneficiaries have sufficient information to enforce against the trustees the terms of the trust and the trustees’ duties.
These disclosure requirements will not apply to most charitable trusts.
Basic trust information
There will be a presumption that the trustees must make available to every beneficiary or their representative (e.g. their parent, where the beneficiary is less than 18 years old), the basic trust information.
‘Basic trust information’ means:
the fact that a person is a beneficiary of the trust;
the name and contact details of the trustees;
the occurrence and details of each appointment, removal and retirement of a trustee; and
the right of the beneficiary to request a copy of the terms of the trust or trust information.
If this presumption applies, the trustees have a positive obligation to provide the basic trust information to every beneficiary (whether or not the beneficiaries have requested that information). The trustees are required to consider at reasonable intervals whether they should be making the basic trust information available to any beneficiary.
Other trust information
There will also be a presumption that the trustees must, within a reasonable period of time, give a beneficiary or their representative any other trust information that person requests.
‘Trust information’ means any information regarding:
the terms of the trust;
the administration of the trust; or
the trust property that is reasonably necessary for the beneficiary to have to enable the trust to be enforced .
Factors to consider when deciding whether presumption applies
Before giving information to a beneficiary, the trustees must consider:
the nature of the interests in the trust held by the beneficiary and the other beneficiaries of the trust;
whether the information is subject to personal or commercial confidentiality;
the expectations and intentions of the settlor at the time of the creation of the trust;
the age and circumstances of the beneficiary;
the age and circumstances of the other beneficiaries of the trust;
the effect on the beneficiary of giving the information;
the effect on the trustees, other beneficiaries of the trust, and third parties of giving the information;
in the case of a family trust, the effect of giving the information on relationships;
in a trust that has a large number of beneficiaries or unascertainable beneficiaries, the practicality of giving information to all beneficiaries;
the practicality of imposing safeguards on the use of the information;
the practicality of giving information to the beneficiary in redacted form;
if a beneficiary has requested information, the nature and context of the request; and
any other factor that the trustee reasonably considers is relevant to determining whether the presumption applies.
If after taking into account those factors the trustees reasonably consider that the information should not be given, the presumption will not apply and the trustees may withhold the information. There are additional requirements in section 54 when no beneficiary has any trust information for 12 months or more (i.e. trust information has been withheld from all beneficiaries).
Our guide
We have published A trustee’s guide to the Trusts Act 2019 (Guide) – the above is an extract from the Guide. If you would like a full copy of the Guide, please get in contact with us.
Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.