Trusts (Scotland) Act 1867
| Jurisdiction | UK Non-devolved |
| Citation | 1867 c. 97 |
| Year | 1867 |
Trusts (Scotland) Act, 1867.
(30 & 31 Vict.) C A P. XCVII.
An Act to facilitate the Administration of Trusts inScotland .
[12th August 1867]
W HEREAS by the Acts Twenty-fourth and Twenty-fifthVictoria , Chapter Eighty-four, and Twenty-sixth and Twenty-seventh Victoria , Chapter One hundred and fifteen, certain Powers are conferred on gratuitous Trustees in Scotland , and it is expedient that greater Facilities should be given for the Administration of Trust Estates in Scotland:
Be it enacted by the Queen's most Excellent Majesty, by and with the Advice and Consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the Authority of the same, as follows:
1 Definition of Trusts and Trust Deeds.
1. In the Construction of this Act and of the said recited Acts the Words ‘Trusts and Trust Deeds’ shall be held to mean and include all Trusts constituted by virtue of any Deed or by private or local Act of Parliament; and the Words ‘gratuitous Trustees,’ in the Sense of this Act and of the said recited Acts shall mean and include all Trustees who are not entitled as such to Remuneration for their Services in addition to any Benefit they may be entitled to under the Trust, or who hold the Officeex officio; and shall extend to and include all Trustees, whether original or assumed, who are entitled to receive any Legacy or Annuity or Bequest under the Trust: Provided always, that no Trustee to whom any Legacy or Bequest or Annuity is expressly given on condition of the Recipient thereof accepting the Office of Trustee under the Trust, shall be entitled to resign the Office of Trustee by virtue of this or of the said recited Acts, unless otherwise expressly declared in the Trust Deed.
2 General Powers of Trustees.
2. In all such Trusts the Trustees shall have Power to do the following Acts, where such Acts are not at variance with the Terms or Purposes of the Trust; and such Acts when done shall be as effectual as if such Powers had been contained in the Trust Deed, viz.:
1. To appoint Factors and Law Agents, and to pay them a suitable Remuneration:
2. To discharge Trustees who have resigned, and the Representatives of Trustees who have died:
3. To grant Leases of the Heritable Estate of a Duration not exceeding Twenty-one Years for Agricultural Lands, and Thirty-one Years for Minerals, and to remove Tenants:
4. To uplift, discharge, or assign Debts due to the Trust Estate:
5. To compromise or to submit, and refer all Claims connected with the Trust Estate:
6. To grant all Deeds necessary for carrying into effect the Powers vested in the Trustees:
7. To pay Debts due by the Truster or by the Trust Estate without requiring the Creditors to constitute such Debts where the Trustees are satisfied that the Debts are proper Debts of the Trust.
3 Powers which may be granted to Trustees by the Court.
3. It shall be competent to the Court of Session, on the Petition of the Trustees under any Trust Deed, to grant Authority to the Trustees to do any of the following Acts, on being satisfied that the same is expedient for the Execution of the Trust and not inconsistent with the Intention thereof; and the Court shall determine all Questions of Expenses in relation to such Applications, and where it shall be of opinion that the Expense of any such Application should not be charged against the Trust Estate, it shall so find in disposing of the Application:
1. To sell the Trust Estate or any Part of it:
2. To grant Feus or Long Leases of the Heritable Estate or any Part of it:
3. To borrow Money on the Security of the Trust Estate or any Part of it:
4. To excamb any Part of the Trust Estate which is heritable:
Provided always, that when all the Beneficiaries under the Trust in existence at the Date of presenting such Petition are of full Age and capable of acting, it shall be in their Power, by Deed of Consent, to grant Authority to the Trustees to do any of the said Acts, the same not being inconsistent with the Intention of the Trust; and such Authority being obtained, the said Acts, when done, shall be equally valid and effectual as if the Authority of the Court for the Execution of the same had previously been obtained.
4 Extension of Powers of Trustees for Sale.
4. All Powers of Sale conferred on Trustees by the Trust Deed, or by virtue of this Act, may be exercised either by public Roup or private Bargain, unless otherwise directed in the Trust Deed or in the Authority given by the Court, or in the Deed of Consent to be granted by the Beneficiaries; and when the Estate is heritable, it shall be lawful in such Sales to sell, subject to or under Reservation of a Feu Duty or Ground Annual, at such Rate and on such Conditions as may be agreed upon; and in all Sales and Feus it shall be lawful to reserve the Mines and Minerals if so wished.
5 Powers of Trustees under Trust Deeds with respect to Investments.
5. Trustees under any Trust Deed may, unless the contrary be expressly provided in such Trust Deed, invest the Trust Funds in the Purchase of any of the Government Stocks, Public Funds, or Securities of the United Kingdom, or Stock of the Bank ofEngland , or may lend the Trust Funds on the Security of any of the aforesaid Stocks or Funds or on the Security of Heritable Property in Scotland , and may from Time to Time at their Discretion vary any such Investment or Loan: Provided, that the Trustees shall not be held to be subject as Defendants or Respondents to the Jurisdiction of any of Her Majesty's Superior Courts of Law or Equity in England or Ireland , either as Trustees or personally, by reason of their having invested or lent Trust Funds as aforesaid.
6 Powers of Investment in Trust Deeds not to be restricted.
6. The Powers of Investment conferred by this Act shall not be held or construed as restricting or controlling any Powers of Investment of Trust Funds expressly contained in any Trust Deed.
7 The Court may authorize the Advance of Part of the Capital of a Trust Fund.
7. The Court may from Time to Time, under such Conditions as they see fit, authorize Trustees to advance any Part of the Capital of a Fund destined, either absolutely or contingently, to Minor Descendants of the Truster, being Beneficiaries having a vested Interest in such Fund, if it shall appear that the Income of the Fund is insufficient or not applicable to, and that such Advance is necessary for, the Maintenance or Education of such Beneficiaries, or any of them, and that it is not expressly prohibited by the Trust Deed, and that the Rights of Parties other than the Heirs or Representatives of such Minor Beneficiaries shall not be thereby prejudiced.
8 Application of Trust Funds.
8. The Court may, on Petition by the Trustees, and after such Intimation and Inquiry as may be thought necessary, authorize the Trustees under any Trust Deed to apply the whole or any Part of Trust Funds which they are empowered or directed by the Trust Deed to invest in the Purchase of Heritable Property to the Payment or Redemption of any Debt or Burden affecting Heritable Property which may be destined to the same Series of Heirs, and subject to the same Conditions as are by the Trust Deed made applicable to the Heritable Property directed to be purchased; provided always, that such Application shall not be inconsistent with the other Provisions of the Trust Deeds.
9 Discharge of Trustees resigning and Heirs of Trustees dying during the Subsistence of the Trust.
9. When a Trustee who resigns, or the...
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