New Bill aims to provide clarity for the users of trusts
A Bill which aims to provide clarity and convenience for users of Manx trusts and local trust practitioners is the focus of a new consultation released this week by the government.
The draft Trusts and Trustees Bill 2022 aims to modernise and stimulate greater competition in the island’s trust sector through amendments to existing legislation and additions to trust law, according to the government.
The Bill comprises a set of proposals, the majority of which were originally put forward in 2015 to the Regulatory and Legislative Innovation Working Group — featuring representatives from across the island’s finance sector — and were subject to a stakeholder consultation in August 2016.
The Treasury then worked with internal partners and external stakeholders, as well as the Financial Services Authority, to explore the proposals and prepare the policy that underpins the recently introduced Bill.
Seven changes to Isle of Man trust laws are proposed within the Bill which include the disclosure of trust information, power of trustee to contract with himself, liability of trustees to third parties, validation of appointments where objects are excluded or take illusory shares, power to declare exercise of a power voidable, amendment of the Limitation Act 1984, shortening the current six-year limitation period in which a beneficiary can bring a claim for breach of trust to three years, and amendment of the Apportionment Act 1982.
The consultation includes 25 questions, which aim to gather views and feedback before the Bill is finalised and taken through the branches of Tynwald.
The consultation document is available to view and download from on the government’s consultation hub by visiting consult.gov.im.
Written comments can be emailed to [email protected]
The process will run for four weeks and conclude on Monday, May 9.
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