1.10The Trustee Amendment Bill 2007 would have given substance to many of the particular recommendations made by the Law Commission in Some Problems in the Law of Trusts. While the Bill was considered and reported back by the Justice and Electoral Committee, it was never given a second reading. The Bill was discharged in March 2012, because of this project. The report of the Select Committee had, however, been a critical impulse for the beginning of this review within the Law Commission.
Although we agree in principle with this amendment bill we do not think it reforms the law relating to trusts extensively enough. During the course of our examination of this bill many related issues that were outside the scope of this bill were brought to our attention, … We urge the Government to conduct a comprehensive review of the law relating to trusts as soon as practicable.
[T]his is very poor legislation which results from an ancient Law Commission report. It misses some big issues while concentrating on a series of minor ones. The real need is to repeal the out-of-date Trustee Act 1956 and replace it with legislation which is relevant and up to date.
1.14This reference was, in essence, the Government’s response to the recommendation by the Select Committee that there be a wider inquiry into the law of trusts than the Commission’s 2002 Report. The proposals in this Report cover the additional topics identified by the Select Committee with the exception of accession to the Hague Convention (which must wait until the charitable and purpose trusts review) and trading trusts (which will be considered further when we look at companies acting as trustees). The principal recommendation of this Report is that there be a new Trusts Act.