Section 61 Interests of negligible valueI1

Scotland Not yet in force

(1)

This section applies in relation to loss sustained by—

(a)

a beneficiary, or

(b)

a potential beneficiary,

(either such person being referred to in this section as “B”) as a consequence of the making of an arrangement to which section 58 applies.

(2)

The trustees are not liable to B for the loss if—

(a)

B was a beneficiary, or potential beneficiary, when the arrangement was made,

(b)

agreement by, or approval on behalf of, B to the arrangement (being agreement or approval in accordance with section 59) was not given, and

(c)

prior to the arrangement being made the court, on the application of the trustees or of any of the beneficiaries, was satisfied either—

(i)

that B’s interest was so remote as to be of negligible value, or

(ii)

that, in the event of B becoming a beneficiary, B’s interest would be so remote as to be of negligible value.

(3)

(a)

applies irrespective of when the trust was created, but

(b)

does not apply as respects a private purpose trust or a public trust.

Annotations