Recognition of Trusts Act 1987 (Overseas Territories) Order 1989

JurisdictionUK Non-devolved
CitationSI 1989/673
Year1989

1989 No. 673

TRUSTS

The Recognition of Trusts Act 1987 (Overseas Territories) Order 1989

Made 18th April 1989

Laid before Parliament 26th April 1989

Coming into force 1st June 1989

At the Court at Windsor Castle, the 18th day of April 1989

Present,

The Queen’s Most Excellent Majesty in Council

Her Majesty, by and with the advice of Her Privy Council, and by virtue of the authority conferred upon Her by sections 2(2) and 2(3) of the Recognition of Trusts Act 19871and of all other powers enabling Her in that behalf, is pleased to direct, and it is hereby directed, as follows:

S-1 This Order may be cited as the Recognition of Trusts Act 1987...

1. This Order may be cited as the Recognition of Trusts Act 1987 (Overseas Territories) Order 1989 and shall come into force on 1st June 1989.

S-2 The Recognition of Trusts Act 1987 and the Schedule thereto,...

2.—(1) The Recognition of Trusts Act 1987 and the Schedule thereto, modified as in Schedule 1 hereto, shall form part of the law of the Territories specified in Schedule 2 hereto.

(2) For the purpose of construing the said Act as part of the law of any Territory to which it extends “the Territory” means that Territory.

G. I. de Deney

Clerk of the Privy Council

SCHEDULE 1 TO THE ORDER

Article 2(1)

THE RECOGNITION OF TRUSTS ACT 1987 AND THE SCHEDULE THERETO AS MODIFIED AND EXTENDED TO THE TERRITORIES SPECIFIED IN SCHEDULE 2 TO THE ORDER

SCH-1.1

1.—(1) The provisions of the Convention set out in the Schedule to this Act shall have the force of law in the Territory.

(2) Those provisions shall, so far as applicable, have effect not only in relation to the trusts described in Articles 2 and 3 of the Convention but also in relation to any other trusts of property arising under the law of the Territory or by virtue of a judicial decision whether in the Territory or elsewhere.

(3) In accordance with Articles 15 and 16 such provisions of the law as are there mentioned shall, to the extent there specified, apply to the exclusion of the other provisions of the Convention.

(4) In Article 17 the reference to a State includes a reference to any country or territory (whether or not a party to the Convention) which has its own system of law.

(5) Article 22 shall not be construed as affecting the law to be applied in relation to anything done or omitted before the coming into force of this Act.

SCH-1.3

3.—(1) This Act may be cited as the Recognition of Trusts Act 1987.

(3) This Act binds the Crown.

SCHEDULE TO THE ACT

Section 1

CONVENTION ON THE LAW APPLICABLE TO TRUSTS AND ON THEIR RECOGNITION

1 CHAPTER I – SCOPE

CHAPTER I – SCOPE

ARTICLE 1

ARTICLE 1

This Convention specifies the law applicable to trusts and governs their recognition.

ARTICLE 2

ARTICLE 2

For the purposes of this Convention, the term “trust” refers to the legal relationship created – inter vivos or on death – by a person, the settlor, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose.

A trust has the following characteristics —

(a) the assets constitute a separate fund and are not a part of the trustee’s own estate;

(b) title to the trust assets stands in the name of the trustee or in the name of another person on behalf of the trustee;

(c) the trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon him by law.

The reservation by the settlor of certain rights and powers, and the fact that the trustee may himself have rights as a beneficiary, are not necessarily inconsistent with the existence of a trust.

ARTICLE 3

ARTICLE 3

The Convention applies only to trusts created voluntarily and evidenced in writing.

ARTICLE 4

ARTICLE 4

The Convention does not apply to preliminary issues relating to the validity of wills or of other acts by virtue of which assets are transferred to the trustee.

ARTICLE 5

ARTICLE 5

The Convention does not apply to the extent that the law specified by Chapter II does not provide for trusts or the category of trusts involved.

2 CHAPTER II – APPLICABLE LAW

CHAPTER II – APPLICABLE LAW

ARTICLE 6

ARTICLE 6

A trust shall be governed by the law chosen by the settlor. The choice must be express or be implied in the terms of the...

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