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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 3 July 2025
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Displaying 418 contributions

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Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

I will move us on to sections 16 and 17 of the bill, which look at trustees’ powers of investment. I think that the question will be to the whole panel; perhaps Ross Anderson could start off and we can work our way around.

The Law Society of Scotland and the academic Yvonne Evans have suggested that, in view of Scotland’s increasing emphasis on net zero goals, sections 16 and 17 could be amended to allow trusts to adopt environmentally friendly investment policies, particularly when those might underperform compared with other investments. The committee is interested to hear the panel’s views on that policy idea. If you support it in principle, do you think that the drafting of sections 16 and 17 would need to be tweaked or amended to make it clear to trustees that they have the power to make such investments, even when they might underperform compared with other investments?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

We have a similar set of questions for this panel as we had for the previous panel. Sections 16 and 17 relate to trustees’ powers of investment. Some of the witnesses will have heard me asking a question about that. Both the Law Society and the academic Yvonne Evans, who we heard from last week, have suggested that, in view of Scotland’s increasing emphasis on net zero, sections 16 and 17 could be amended to allow trusts to adopt environmentally friendly investment policies, particularly when those investments might underperform other investments.

As I asked the previous panel, it would be helpful for the committee to hear your views on that idea. Do you support it in principle and do you think that sections 16 and 17 could be amended or tweaked in order to make it clearer to trustees that they have the power to make those sorts of investments?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

I am happy to leave it there, convener. Thank you.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

There have been different views, which makes me question whether there should be clarification or an explicit line in the bill to say that that approach is perfectly permissible and within the powers.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

Would it be possible to allow a case-by-case approach to be taken but to still be clear in the bill that that is an option for those trustees who are interested?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

No, thank you, convener.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

Thank you very much. I will hand back to the convener.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

Does the bill as drafted allow trustees to make such investments, or does it need to be amended to make it clear that such an option is open to them?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

My question is on section 72, which is about the right of a spouse or civil partner to inherit. It features in part 2, which is on succession law, and various stakeholders, including the Law Society, have said that a distinction should be drawn between spouses or civil partners who were living with the deceased person at the time of their death and spouses or civil partners who had previously separated from the deceased person but who had not divorced or had not had the partnership dissolved.

It would be helpful for the committee to hear the witnesses’ views on that policy idea and that distinction. For example, do you agree that, with good drafting of the provision, it is possible to describe and define what is and is not separation? Obviously, we are aware of circumstances in which people are still very much together and in a relationship, even though they might be living separately for reasons outwith their control. One of them might be in prison, say, or working overseas. Is it possible to draft a clear distinction to cover those circumstances and would it be helpful to do so?

10:00  

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Mercedes Villalba

As the convener said to the previous panel, if any witness has any suggestions, thoughts or ideas that they would like the committee to follow up, we would be very grateful to receive them.