Trusts (Scotland) Act 1921
| Jurisdiction | UK Non-devolved |
| Citation | 1921 c. 58 |
Trusts (Scotland) Act, 1921
(11 & 12 Geo. 5.) CHAPTER 58.
An Act to consolidate and amend the Law relating to Trusts in Scotland.
[19th August 1921]
Be it enacted by the King'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 Citation.
1. This Act may be cited as theTrusts (Scotland) Act, 1921.
2 Definitions.
2. In the construction of this Act unless the context otherwise requires—
‘Trust’ shall mean and include—
‘Trust deed’ shall mean and include—
‘Trustee’ shall mean and include any trustee under any trust whether nominated, appointed, judicially or otherwise, or assumed, whether sole or joint, and whether entitled or not to receive any benefit under the trust or any remuneration as trustee for his services, and shall include any trustee ex officio, executor nominate, tutor, curator, and judicial factor;
‘Judicial factor’ shall mean any person judicially appointed factor upon a trust estate or upon the estate of a person incapable of managing his own affairs, factor loco tutoris, factor loco absentis, and curator bonis;
‘Local authority’ and ‘rate’ shall have respectively the meanings assigned to these expressions by the Local Authorities Loans (Scotland) Act, 1891;
‘The court’ shall mean the Court of Session;
‘East India Stock’ shall mean India 3
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3 What trusts shall be held to include.
3. All trusts shall be held to include the following powers and provisions unless the contrary be expressed (that is to say):—
Provided that—
(1) A sole trustee shall not be entitled to resign his office by virtue of this Act unless either (1) he has assumed new trustees and they have declared their acceptance of office, or (2) the court shall have appointed new trustees or a judicial factor as hereinafter in this Act provided; and
(2) A trustee who has accepted any legacy or bequest or annuity expressly given on condition of the recipient thereof accepting the office of trustee under the trust shall not be entitled to resign the office of trustee by virtue of this Act, unless otherwise expressly declared in the trust deed, nor shall any trustee appointed to the office of trustee on the footing of receiving remuneration for his services be entitled so to resign that office in the absence of an express power to resign; but it shall be competent to the court, on the petition of any trustee to whom the foregoing provisions of this proviso apply, to grant authority to such trustee to resign the office of trustee on such conditions (if any) with respect to repayment or otherwise of his legacy as the court may think just; and
(3) A judicial factor shall not, by virtue of this Act, have the power of assumption, nor shall he have the power by virtue of this Act to resign his office without judicial authority.
Nothing in this section shall affect any liability incurred by any trustee prior to the date of any resignation or assumption under the provisions of this Act or of any Act repealed by this Act.
4 General powers of trustees.
(1) In all 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.:—
(a ) To sell the trust estate or any part thereof, heritable as well as moveable.
(b ) To grant feus of the heritable estate or any part thereof.
(c ) To grant leases of any duration (including mineral leases) of the heritable estate or any part thereof and to remove tenants.
(d ) To borrow money on the security of the trust estate or any part thereof, heritable as well as moveable.
(e ) To excamb any part of the trust estate which is heritable.
(f ) To appoint factors and law agents and to pay them suitable remuneration.
(g ) To discharge trustees who have resigned and the representatives of trustees who have died.
(h ) To uplift, discharge, or assign debts due to the trust estate.
(i ) To compromise or to submit and refer all claims connected with the trust estate.
(j ) To refrain from doing diligence for the recovery of any debt due to the truster which the trustees may reasonably deem irrecoverable.
(k ) To grant all deeds necessary for carrying into effect the powers vested in the trustees.
(l ) 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.
(m ) To make abatement or reduction, either temporary or permanent, of the rent, lordship, royalty, or other consideration stipulated in any lease of land, houses, tenements, minerals, metals, or other subjects, and to accept renunciations of leases of any such subjects.
(n ) To apply the whole or any part of trust funds which the trustees are empowered or directed by the trust deed to invest in the purchase of heritable property in 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 heritable property directed to be purchased.
(2) This section shall apply to acts done before as well as after the passing of this Act, but shall not apply so as to affect any question relating to an act enumerated in head (a ), (b ), (c ), (d ), or (e ) of this section which may, at the passing of this Act, be the subject of a depending action.
5 Powers which may be granted to trustees by the court.
5. It shall be competent to the court, on the petition of the trustees under any trust, to grant authority to the trustees to do any of the acts mentioned in the section of this Act relating to general powers of trustees, notwithstanding that such act is at variance with the terms or purposes of the trust, on being satisfied that such act is in all the circumstances expedient for the execution of the trust.
In this section the expression ‘trust’ shall not include any trust constituted by private or local Act of Parliament, and the expression ‘trustees’ shall be construed accordingly.
6 Method of sale by trustees.
6. 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, and when the estate is heritable it shall be lawful in the exercise of such powers 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 such sales and feus it shall be lawful to reserve the mines and minerals.
7 Deeds granted by trustees.
7. Any deed bearing to be granted by the trustees under any trust, and in fact executed...
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