The Commission wants to attract new business to the UK and compete with the British Overseas Territories and Crown Dependencies, as well as Singapore and New Zealand.
The current arrangements date back to 1925 and England and Wales is being left behind by more competitive jurisdictions, according to the Commission.
“Trusts are a significant source of business for the City of London and many international corporations use English law and courts to govern their arrangements,” said the Commission.
Modernising Trust Law for a Global Britain is one of 14 areas the Commission will investigate and make recommendations for over the next three years.
“Trusts continue to play an important role in our society by allowing individuals freedom of choice in who should inherit their assets and to provide for and protect vulnerable beneficiaries,” said Robin Vos, chair of the Society of Trust and Estate Practitioner’s UK technical committee.
“I am delighted that the Law Commission has recognised this in its decision to consider how trust law in England and Wales can be improved and has, at the same time, acknowledged the significant contribution which English trust law makes in an international context.”
Other issues and Brexit uncertainty
Other issues to be considered in the new law reform programme include disposal of the dead to reflect modern practices and the deceased wishes and clarify chancel repair liability.
Chancel repair liability is an obligation on a landowner to pay for certain repairs to a local church. It has its origins in the feudal system and is rarely enforced, but when it is the liability can be huge.
The Commission wants to ensure it never binds purchasers of land unless the liability is registered to eliminate the need for expensive chancel liability searches.
The areas of law selected for reform are chosen depending on how unsatisfactory they are and where there is a serious intention of government to reform.
In a nod to Brexit the Commission notes uncertainty could knock any project off the agenda and they would have to be flexible.
