Changes Required to Wills Due to the Trusts Act 2019
The Trusts Act 2019 applies to all trusts, including those created by a will (called testamentary trusts), as a result of section 4B of the Administration Act 1969. This means that all wills prepared before August 2019 need to be updated to comply with the new requirements of the Trusts Act 2019.
Key Changes and Their Impact on Wills:
Mandatory and Default Trustee Duties: The Trusts Act 2019 sets out mandatory duties that trustees must follow, such as acting honestly and in good faith. It also includes default duties that apply unless you specifically exclude or modify them in your will.
What This Means: When making or updating a will, it's important to clearly outline which duties your trustees should follow. This ensures they understand their responsibilities and can manage the trust according to your wishes.
Trust Duration: The Act changes how long a trust can last. While this may not directly impact most testamentary trusts, it's something to consider if you're planning a long-term trust.
What This Means: If you want the trust created by your will to last a long time, make sure its structure follows the new rules on how long a trust can last.
Trustee Powers and Decision-Making: The Act gives clearer guidance on what powers trustees have and how they should make decisions.
What This Means: Your will should clearly state what powers you want your trustees to have. This is especially important if you want them to have specific powers or limitations in managing the trust's assets.
Practical Steps:
Review and Update Wills: It's essential to review any existing wills and update them to reflect your current wishes and to comply with the Trusts Act 2019. This includes making sure the duties of trustees are clear and reflect your intentions.
Consult with Legal Experts: We recommend working with Ross Holmes Virtual Lawyers Limited to update your will. This ensures that the trusts created by the will are compliant with the new law, giving you peace of mind that your wishes will be honoured and the will managed correctly under the new legal framework.
