Trusts Act 2019: Application

The Trusts Act will apply to “express trusts” (both new and existing). An express trust is a trust:

• where the trustees hold property for the benefit of the beneficiaries or for a permitted purpose (e.g. a charitable purpose);

• where the trustees are accountable for carrying out the trust;

• which does not have a sole trustee who is also the sole beneficiary; and

• which is created by an enactment or by a person who clearly indicates an intention to create a trust, identifies the beneficiaries or the permitted purpose of the trust and identifies the trust property.

Common examples of express trusts include discretionary trusts (e.g. a family trust), testamentary trusts (e.g. a trust established by a Will) and charitable trusts. Express trusts are also common in commercial transactions.

In some cases, the application of the Trusts Act will extend beyond express trusts (refer to section 5(2)).

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.