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Trusts and Succession (Scotland) Bill

The Bill aims to change the law in relation to two areas:

  • trusts: how they are administered and managed
  • succession: who has the right to inherit and in what order

This is a Government bill

The Bill became an Act on 30 January 2024

Introduced: the Bill and its documents

Overview

This Bill is split into two parts.

Part 1

Part 1 of the Bill deals with trusts. A trust is a way of managing assets (including money, investments, land or buildings) for people. There are different types of trusts for different purposes. The Bill updates the law around what the person who manages a trust (called a trustee) can do. The Bill clarifies:

  • what kind of investments can be made by a trustee
  • a trustee’s duty of care in relation to their role
  • whether a person can be a trustee or not
  • how someone would stop being a trustee by resigning or being removed
  • what type of information a trustee must provide to other people (including to beneficiaries – the people who will benefit from the trust ) and how often
  • the management of private purpose trusts.

There might be more than one beneficiary, like a whole family or defined group of people. The Bill clarifies the information a beneficiary must be given and how their views should be considered. The Bill also clarifies the role the court must take in terms of representing a beneficiary under the age of 18.

Part 2

Part 2 of the Bill deals with succession. Succession is the way that a person’s property is managed and distributed after they die, including who will inherit it.

Section 71 clarifies the law in relation to special destinations. A special destination is a condition that often applies when people (usually spouses) buy property jointly. It means that if one of the joint owners dies, their share in that property automatically passes to the other person. The Bill clarifies that if, under these circumstances, the people were married, but later divorced, the property is not automatically inherited by the ex-partner.

Section 72 reorders who inherits property when someone dies without leaving a will. At the moment, spouses and children are entitled to a specific share of the property whether or not a person has left a will (these are called prior and legal rights). If there is no will, there is then a list to show who any remaining property will go to. Children and grandchildren are first on that list, followed by parents and siblings and then a spouse.

The Bill proposes to list spouse after children and grandchildren. This would mean that if someone died without a will, leaving behind a spouse, but no children or grandchildren, the spouse would inherit everything. But if the deceased person had any children or grandchildren, they would inherit any property left after the share identified under legal and prior rights.

Why the Bill was created

The Bill aims to modernise the law.

Trusts have been in use since at least the early 17th century in Scotland. The main existing legislation on trusts is the Trusts (Scotland) Act 1921. The 1921 Act has been significantly amended making it complicated and difficult to understand.

There was some doubt on how the existing law on succession and special destinations should be interpreted. The Bill aims to clarify the existing law.

The Bill also aims to modernise the order in which people inherit. This is to reflect changes to how society understands families and the different relationships within them.

Bill as Introduced

Trusts and Succession (Scotland) Bill as introduced (3MB, pdf) posted 22 November 2022

Accompanying Documents

Explanatory Notes (338KB, pdf) posted 22 November 2022

Policy Memorandum (392KB, pdf) posted 22 November 2022

Financial Memorandum (128KB, pdf) posted 22 November 2022

Delegated Powers Memorandum (138KB, pdf) posted 22 November 2022

Statements on legislative competence (109KB, pdf) posted 22 November 2022

Accompanying Documents (print versions)

Explanatory Notes (429KB, pdf) posted 22 November 2022

Policy Memorandum (460KB, pdf) posted 22 November 2022

Financial Memorandum (257KB, pdf) posted 22 November 2022

Delegated Powers Memorandum (210KB, pdf) posted 22 November 2022

Statements on legislative competence (158KB, pdf) posted 22 November 2022

Crown Consent

This Bill requires Crown consent. It is expected that this consent will be signified at Stage 3.

Financial Resolution

The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is not required for this Bill.

Research on the Bill

The Scottish Parliament's Information Centre (SPICe) prepares impartial research and analysis to assist MSPs in their examination of Bills and other parliamentary business.

Research briefing on the Trusts and Succession (Scotland) Bill

The Bill was introduced on 22 November 2022

Stage 1: general principles

At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.

Timetable for Stage 1

On 22 March 2023, the Parliament agreed motion S6M-08323 that consideration of the Trusts and Succession (Scotland) Bill at Stage 1 be completed by 6 October 2023.

Lead committee examines the Bill

The lead committee for this Bill is the Delegated Powers and Law Reform Committee.

Call for views (closed)

The Delegated Powers and Law Reform Committee held a call for views to help inform its examination of the Bill.

Read the call for views

Read SPICe analysis of responses to the call for views (476KB, pdf) posted 04 May 2023

The Committee reviewed the following Scottish Parliament research briefing:

SPICe briefing on capacity and the Adults with Incapacity (Scotland) Act 2000 (186KB, pdf) posted 05 September 2023

Correspondence: lead committee

Trusts and Succession (Scotland) Bill response from the Scottish Government on the Stage 1 Report

Letter from the Minister for Victims and Community Safety to the Convener, 26 September 2023

Trusts and Succession (Scotland) Bill response from the Auditor of the Court of Session

Letter from the Auditor of the Court of Session to the Convener, 21 September 2023

Trusts and Succession (Scotland) Bill letter to Auditor of the Court of Session

Letter from the Convener to the Auditor of the Court of Session, 8 September 2023

Trusts and Succession (Scotland) Bill letter to Auditor of Court for Edinburgh Sheriff Court

Letter from the Convener to the Auditor of Court for Edinburgh Sheriff Court, 8 September 2023

Trusts and Succession (Scotland) Bill response from the Scottish Government

Letter from the Minister for Victims and Community Safety to the Convener, 23 August 2023

See a full list of Stage 1 correspondence

Meetings

Report on delegated powers provisions

The Delegated Powers and Law Reform Committee published a report on 19 January 2023.

Delegated Powers Provisions in the Trusts and Succession (Scotland) Bill at Stage 1

Stage 1 report by the lead committee

The Delegated Powers and Law Reform Committee published its Stage 1 Report on 15 September 2023.

Trusts and Succession (Scotland) Bill Stage 1 Report

The Committee received the following response to its report:

Letter from the Minister for Victims and Community Safety, 26 September 2023 (210KB, pdf) posted 27 September 2023

Stage 1 Debate and decision

A Stage 1 debate took place on 28 September 2023 to consider and decide on the general principles of the Bill.

  • Motion title: Trusts and Succession (Scotland) Bill
  • Text of motion: That the Parliament agrees to the general principles of the Trusts and Succession (Scotland) Bill.
  • Submitted by: Siobhian Brown
  • Date lodged: Monday, 25 September 2023
  • Motion reference: S6M-10595
  • Current status: Taken in the Chamber on Thursday, 28 September 2023

See further details of the motion


Parliament agreed the general principles of the Bill

The Bill ended Stage 1 on 28 September 2023

Stage 2: changes to the Bill

At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them. 

Timetable

On 1 November, Parliament agreed motion S6M-11047, that consideration of the Trusts and Succession (Scotland) Bill at Stage 2 be completed by 24 November 2023. 

First meeting on amendments

Documents with the amendments considered at the meeting held on 14 November 2023.

Marshalled List of Amendments for Stage 2 (494KB, pdf) posted 09 November 2023

Groupings of Amendments for Stage 2 (292KB, pdf) posted 09 November 2023

Stage 2 Correspondence

Amendments to the Trusts and Succession (Scotland) Bill

Letter from the Minister for Victims and Community Safety to the Convener, 3 November 2023

Bill as amended at Stage 2

Revised Documents

Revised Explanatory Notes (108KB, pdf) posted 19 January 2022

Supplementary Delegated Powers Memorandum (123KB, pdf) posted 28 November 2023

Revised Documents (print versions)

Revised Explanatory Notes (467KB, pdf) posted 14 December 2023

Supplementary Delegated Powers Memorandum (275KB, pdf) posted 28 November 2023

After Stage 2

Meeting

Delegated Powers and Law Reform Committee meeting on 12 December 2023

Report

The Delegated Powers and Law Reform Committee published a further report on 12 December 2023.

Delegated Powers Provisions in the Trusts and Succession (Scotland) Bill after Stage 2

The Bill ended Stage 2 on 14 November 2023

Stage 3: final changes and vote

At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them.  There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law. 

Debate on proposed amendments

Documents with the amendments considered at the meeting held on 20 December 2023.

Marshalled List of Amendments for Stage 3 (206KB, pdf) posted 14 December 2023

Supplement to the Marshalled List of Amendments for Stage 3 (215KB, pdf) posted 18 December 2023

Revised Groupings of Amendments for Stage 3 (238KB, pdf) posted 14 December 2023

Stage 3 Correspondence

Trusts and Succession (Scotland) Bill Stage 3

Letter from the Minister for Victims and Community Safety to the Convener, 12 December 2023

Final version of the Bill

Final debate on the Bill

Once MSPs have decided on the amendments, they debate whether to pass the Bill.

  • Motion title: Trusts and Succession (Scotland) Bill
  • Text of motion: That the Parliament agrees that the Trusts and Succession (Scotland) Bill be passed.
  • Submitted by: Siobhian Brown
  • Date lodged: Monday, 18 December 2023
  • Motion reference: S6M-11699
  • Current status: Taken in the Chamber on Wednesday, 20 December 2023

Result 120 for, 0 against, 0 abstained, 9 did not vote Vote Passed

See further details of the motion


Parliament decided to pass the Bill

Printing changes

Printing changes are changes to the text of a Bill. They will not change the legal effect of the Bill.

Trusts and Succession (Scotland) Bill: printing changes after Bill as passed (128KB, pdf) posted 29 January 2024

The Bill ended Stage 3 on 20 December 2023

Bill becomes an Act

The Bill was passed on 20 December 2023 and became an Act on 30 January 2024

Read the Act

Trusts and Succession (Scotland) Act 2024