Scottish Trust Law: Recent developments and what they mean for you

Recently, the Trusts and Succession (Scotland) Act 2024 significantly modernised laws governing trusts, succession, and executors in Scotland, marking the first major reform in over a century. Here are the pivotal updates:

Trusts (Part 1 of the Act):

• Individuals convicted of murder or culpable homicide are now barred from serving as executors to their victim’s estate, ensuring a more ethical standard in estate management.
• Trustees can be removed by a majority vote of their peers for reasons such as incapacity, dishonesty-related convictions, or imprisonment, reinforcing the integrity of trust management.
• Professional trustees are subject to dismissal if they are no longer part of a regulated profession or lose their right to practice, guaranteeing clients a higher standard of care.
• Beneficiaries who are of legal age, fully entitled, and competent have the collective power to remove trustees, granting them increased control.
• Trustees are required to demonstrate care and diligence comparable to that of a prudent person managing someone else’s affairs, a standard that cannot be altered by the trust deed.
• Professional trustees are held to a higher standard of care that aligns with their professional qualifications.
• Trustees are obliged to provide information to beneficiaries upon request unless circumstances deem it inappropriate, with beneficiaries having the right to seek court intervention if needed.
• New rules have been implemented for the appointment of trustees and to facilitate decision making based on majority rule, improving management efficiency.
• Protectors, responsible for supervising and advising trustees, are now formally recognised in Scots law, adding an extra layer of oversight and advice in trust administration.

Succession (Part 2 of the Act):

• In the absence of children, the surviving spouse or civil partner will inherit the entire net intestate estate, streamlining the inheritance process.
• Cohabitants now have up to one year to make a financial claim on the deceased’s estate, providing more time and reducing stress in such circumstances.

These changes in law only affect Scottish trusts (including pension schemes). For those elsewhere in the UK very little has changed.