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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 4 May 2021
  6. Current session: 13 May 2021 to 14 January 2026
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Displaying 1046 contributions

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Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

That makes sense.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

I understand exactly what you are talking about and can see how what you have said provides a bit of clarity on sections 25 and 26. However, is not there a wee issue for beneficiaries and potential beneficiaries in terms of trustees having too much power? Trustees might decide to go forward in a way that means that the beneficiary does not get as much from the trust as they otherwise might have had.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

That is very clear, considering how woolly my question was. [Laughter.]

Ross Anderson, do you have anything to add?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

If there are no other views, those answers have covered my question. Everyone here seems to be of broadly the same mind. That information will be very useful for us, so I thank you.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

Following on the back of that, I will ask about the position on section 61—the alteration of trust purposes—when it comes to family trusts. Section 61 gives a power to the beneficiaries and others to apply to the court to alter the trust purposes of a family trust, and sets out the default position that the power cannot be used for 25 years.

You might have heard the previous panel speak somewhat about that. Given that the views on the 25-year restriction have been mixed, as I said, and that it is a default power only, are you satisfied that retaining the 25-year restriction in the bill is the right policy decision?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

That is an interesting angle as well.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

There is a differentiation in view, obviously.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

Ah! I beg your pardon. I misread that—and I have already had the response from the Law Society.

What do you think, Laura?

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

I move to sections 25 and 26 of the bill. Section 25 requires trustees to tell a beneficiary that they are a beneficiary—that did not really surprise me, but there you go—and to give all the trustees’ names and correspondence details. Under section 25, those duties are mandatory for certain types of beneficiaries, while trustees have some discretion as to what information is provided for potential beneficiaries.

Section 26 covers the information that must be made available to beneficiaries. A trust deed can override section 26, but a court can later review the reasonableness of that override. It has been said in various correspondence and by the previous panel that trustees’ duties to provide information to beneficiaries and potential beneficiaries under those sections of the bill are too onerous. Do you have any ideas about whether that is the case? Would you amend the sections to address those concerns? Would anyone who is dead interested in the matter like to go first? [Laughter.]

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 16 May 2023

Bill Kidd

That is another angle. Thank you very much.