Recognition of Trusts Act 1987
c. 14
3
SCHEDULE
CONVENTION ON THE LAW APPLICABLE TO TRUSTS AND ON THEIR RECOGNITION
CHAPTER I--SCOPE
Article 1
This Convention specifies the law applicable to trusts and governs their recog- nition.
Section 1.
Article 2
For the purposes of this Convention, the term "trust" refers to the legal rela- tionship created inter vivos or on death-by a person, the settlor, when assets have been placed under the control of a trustee for the benefit of a beneficiary or for a specified purpose.
A trust has the following characteristics-
(a) the assets constitute a separate fund and are not a part of the trustee's
own estate;
(b) title to the trust assets stands in the name of the trustee or in the name of
another person on behalf of the trustee;
(c) the trustee has the power and the duty, in respect of which he is account- able, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon him by law.
The reservation by the settlor of certain rights and powers, and the fact that the trustee may himself have rights as a beneficiary, are not necessarily incon- sistent with the existence of a trust.
Article 3
The Convention applies only to trusts created voluntarily and evidenced in writing.
Article 4
The Convention does not apply to preliminary issues relating to the validity of wills or of other acts by virtue of which assets are transferred to the trustee.
Article 5
The Convention does not apply to the extent that the law specified by Chapter II does not provide for trusts or the category of trusts involved.
CHAPTER II-Applicable Law
Article 6
A trust shall be governed by the law chosen by the settlor. The choice must be express or be implied in the terms of the instrument creating or the writing evi- dencing the trust, interpreted, if necessary, in the light of the circumstances of the
case.
Where the law chosen under the previous paragraph does not provide for trusts or the category of trust involved, the choice shall not be effective and the law specified in Article 7 shall apply.