CAP. 76]
Recognition of Trusts
[1989 Ed.
SCHEDULE
CONVENTION ON THE LAW APPLICABLE TO TRUSTS
AND ON THEIR RECOGNITION
BEING THE CONVENTION A DRAFT OF WHICH WAS ANNEXED TO THE FINAL ACT OF THE FIFTEENTH SESSION OF THE HAGUE CONFERENCE ON PRIVATE INTERNATIONAL LAW DATED AT THE HAGUE 20 OCTOBER 1984 IN ENGLISH AND FRENCH, BOTH TEXTS BEING EQUALLY AUTHENTIC
CHAPTER I-SCOPE
Article 1
This Convention specifies the law applicable to trusts and governs their recognition.
Article 2
[s. 2(1)]
For the purposes of this Convention, the term "trust" refers to the legal relationship 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 accountable, 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 inconsistent 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 evidencing 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.
4
CAP. 76]
Recognition of Trusts
[1989 Ed.
SCHEDULE
CONVENTION ON THE LAW APPLICABLE TO TRUSTS
AND ON THEIR RECOGNITION
BEING THE CONVENTION A DRAFT OF WHICH WAS ANNEXED TO THE FINAL ACT OF THE FIFTEENTH SESSION OF THE HAGUE CONFERENCE ON PRIVATE INTERNATIONAL LAW DATED AT THE HAGUE 20 OCTOBER 1984 IN ENGLISH AND FRENCH, BOTH TEXTS BEING EQUALLY AUTHENTIC
CHAPTER I-SCOPE
Article I
This Convention specifies the law applicable to trusts and governs their recognition.
Article 2
[s. 2(1)]
For the purposes of this Convention, the term "trust" refers to the legal relationship 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 accountable, 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 inconsistent 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 evidencing 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.
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