43:
640:(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.
893:. Thus, although the Convention makes provision for the trustee(s) and any third parties, it fails to address the position of the beneficiaries who, for example, might wish to pursue assets intermixed with the trustee's personal property through actions for tracing. One of the problems that beneficiaries might encounter is addressed in Article 12 which considers the problem where the
916:
court in which case
Article 18 empowers the court to deny the Applicable Law, even if it has been expressly selected by the settlor. But Article 15(2) nevertheless requires the forum court to consider adopting an approach that will preserve the overall validity of the trust insofar as that generality does not offend against the mandatory policy.
898:
inconsistent with the law of the State where registration is sought, to do so in his capacity as trustee or in such other way that the existence of the trust is disclosed. This implicitly recognises the desirability of all registration systems distinguishing between beneficial and representative titles.
915:
which require that the validity of a transaction (whether commercial or not) be upheld if at all possible where this will give effect to the reasonable expectations of the parties. The only exceptions shall be where this will produce consequences offending against the mandatory policies of the forum
910:
of the trustee, are more closely connected with States which do not have the institution of the trust or the category of trust involved. But, because this could be interpreted as an invitation not to validate otherwise perfectly appropriate financial arrangements for deserving beneficiaries, Article
859:
Under
Article 11, a trust complying with the Applicable Law shall be recognised as a trust which implies, as a minimum, that the trust property constitutes a separate fund, that the trustee may sue and be sued in his capacity as trustee, and that he or she may appear or act in this capacity before a
897:
law does not have a title registration system which reflects ownership registration in a representative capacity. While recognising that the
Convention cannot require states to modify their existing registers, it provides that the trustee shall be entitled, in so far as this is not prohibited by or
778:
of the settlor and the beneficiaries (particularly if the legal transaction is a marriage settlement or testamentary), the legal form of the document, and the law of the place where the document was executed (this latter factor may either be accidental and so of marginal value, or contrived to take
833:
Articles 9 and 10 allow the
Applicable Law by which the validity of the trust has been established, to sever aspects of the trust and its administration so that separate laws shall apply to each component. In fact, the settlor may expressly select an Applicable Law for each component and the forum
605:
do not have a developed law of trusts, or the principles differ significantly between states. It was therefore necessary for the Hague
Convention to define a trust to indicate the range of legal transactions regulated by the Convention and, perhaps more significantly, the range of applications not
850:
law to the administration of the trust in that state. Equally, this is not an argument for a judicial approach which favours the law of the place of administration as the
Applicable Law. Although the administration must comply with the municipal laws for general purposes, the duty to honour the
704:
or testamentary document. Under normal circumstances, the settlor will be acting on professional advice and will make an express selection or it will be implied from the facts of the case. But, under
Article 6(2), if the settlor selects a law with no relevant provisions or the provisions in the
757:
Despite the identification of these four factors, the court must actually perform a rounded evaluation of all the circumstances. Thus, it would be relevant to consider the distribution of the assets if in separate states, the purpose of the trust (which might be the
901:
This general difficulty of municipal laws failure to support trusts is addressed in
Article 13, which considers the situation of those who wish to create a trust but can only do so by invoking laws entirely outside their own state. As an application of
738:
and other instruments where title is determined by mere possession are relatively uncommon), but for tangible assets, this will usually be the place where the assets are located at the time of the hearing given that this represents the place where any
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1260:
834:
court should respect his or her wishes. But, in general terms, it is desirable that a single law should be applied to the administration and the fact that there may be assets located in separate states should not,
705:
municipal law selected would be inappropriate, or there is no selection, Article 7 applies to select the law which is most closely connected with the transaction. This is judged by reference to four alternative
1130:
787:
Under
Article 8, the law specified by Article 6 or 7 shall govern the validity of the trust, its construction, its effects, and the administration of the trust. In particular that law shall govern:
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1210:
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and choice of law before the
Convention rules can apply. This will include, for example, a detailed consideration of any marriage settlement or applicable law containing
812:(h) the variation of termination of the trust (because variation is expressly within the scope of the Applicable Law, this may be a significant factor in any issue of
1150:
911:
14 provides that the Convention shall not prevent the application of rules of law more favourable to the recognition of trusts. This reflects the positive rules of
906:, no forum state is bound to recognise a trust the significant elements of which, except for the choice of the applicable law, the place of administration and the
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1053:
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885:(d) that the trust assets may be recovered when the trustee, in breach of trust, has mingled trust assets with his own property or has alienated trust assets.
1115:
851:
intentions of the settlor may make the law of the place where the most significant part of that intention is to be realised the most significant single law.
889:
However, the rights and obligations of any third party holder of the assets shall remain subject to the law determined by the choice of law rules of the
864:
or any person acting in an official capacity. In so far as the law applicable to the trust requires or provides, this recognition implies in particular:
529:
882:(c) that the trust assets shall not form part of the matrimonial property of the trustee or his spouse nor part of the trustee's estate upon his death;
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121:
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503:
800:(d) the power of trustees to administer or to dispose of trust assets , to create security interests in the trust assets, or to acquire new assets;
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658:, statutory trusts or trusts created by judicial order. But signatory states are free to apply the Convention to any form of trust. There are
562:. It concluded on 1 July 1985, entered into force 1 January 1992, and is as of September 2017 ratified by 14 countries. The Convention uses a
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183:
1250:
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17:
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791:(a) the appointment, resignation and removal of trustees, the capacity to act as a trustee, and the devolution of the office of trustee;
809:(g) the relationships between the trustees and the beneficiaries including the personal liability of the trustees to the beneficiaries;
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1195:
670:, or that the will is formally or substantively invalid, or that it had been revoked, these issues must be determined first under the
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each party recognises the existence and validity of trusts. However, the Convention only relates to trusts with a written
637:(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;
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797:(c) the right of trustees to delegate in whole or in part the discharge of their duties or the exercise of their powers;
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692:). Obviously, if the will purporting to create the trust is held invalid, there are no trusts to adjudicate upon.
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the Convention sets out clear rules for determining the governing law of trusts with a cross-border element.
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806:(f) restrictions upon the duration of the trust, and upon the power to accumulate the income of the trust;
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the place where the assets are to be found (for immovables, there is no problem – the
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raised if an application to vary is made to a forum other than a forum of the Applicable Law);
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868:(a) that personal creditors of the trustee shall have no recourse against the trust assets;
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can be applied to micromanage the asset(s) by the trustee(s) without having to apply the
634:(a) the assets constitute a separate fund and are not a part of the trustee's own estate;
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created voluntarily and evidenced in writing. It will therefore not cover oral trusts,
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problems if the trust is testamentary and, under Article 4, if it is alleged that the
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As of September 2017, 14 countries have ratified the convention: Australia, Cyprus,
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Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition
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provisions which might prevent the testator alienating property from a spouse or
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or other provisions in some of the states where the assets are located), the
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the Convention sets out the characteristics of trusts under the convention.
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which are to be considered as at the time the putative trust is created:
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Hague Convention on the Law Applicable to Trusts and on their Recognition
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Hague Convention on the Law Applicable to Trusts and on their Recognition
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the place where the trustee is resident or conducts his or her business;
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definition of a trust, which is the subject of the convention, and sets
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the place where the purpose or object of the trust is to be fulfilled.
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1261:
Treaties extended to Saint Helena, Ascension and Tristan da Cunha
700:
Article 6 allows the settlor to select the applicable law in the
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of the applicable law. The key provisions of the Convention are:
928:(9 provinces: all except Quebec, and none of the territories),
824:(j) the duty of trustees to account for their administration.
722:
is easily identified; for movables, the most common form is
779:
advantage of a favourable law and so highly significant).
1131:
Hague Conference on Private International Law conventions
794:(b) the rights and duties of trustees among themselves;
646:
Article 3 provides that the Convention only applies to
620:, when assets have been placed under the control of a
582:. It would not apply trusts which arise (usually in
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Treaties extended to the British Antarctic Territory
606:regulated. The definition offered in Article 2 is:
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586:jurisdictions) without a written trust instrument.
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713:the place where the trust is to be administered;
1226:Treaties extended to the British Virgin Islands
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1082:Hague Conference on International Private Law
1054:Hague Conference on Private International Law
556:Hague Conference on Private International Law
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8:
30:
840:, justify severing the trust. The relevant
631:A trust has the following characteristics:
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1026:South Georgia & South Sandwich Islands
530:
516:
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41:
29:
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821:(i) the distribution of the trust assets;
803:(e) the powers of investment of trustees;
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27:1985 treaty on international trust law
184:Conflict of laws in the United States
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1246:Treaties extended to the Isle of Man
1116:Treaties entered into force in 1992
960:(European territory only), Panama,
610:...the legal relationship created,
71: Signatory that did not ratify
25:
490:Enforcement of foreign judgments
1256:Treaties extended to Montserrat
783:The scope of the applicable law
743:would have to be enforced: see
1236:Treaties extended to Gibraltar
1191:Treaties of the United Kingdom
616:or on death, by a person, the
570:for resolving problems in the
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1216:Treaties extended to Bermuda
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1176:Treaties of the Netherlands
990:British Antarctic Territory
628:or for a specified purpose.
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1276:20th century in The Hague
1196:Treaties of Liechtenstein
558:on the Law Applicable to
341:Lex loci delicti commissi
145:private international law
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1206:1985 in the Netherlands
1186:Treaties of Switzerland
416:Substantive legal areas
1201:Treaties of San Marino
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1078:Text of the Convention
994:British Virgin Islands
548:Hague Trust Convention
474:Hague Trust Convention
408:Forum selection clause
384:Lex loci celebrationis
191:Public policy doctrine
31:Hague Trust Convention
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982:Akrotiri and Dhekelia
974:dependent territories
690:succession (conflict)
624:for the benefit of a
497:Anti-suit injunctions
368:Lex loci protectionis
206:Definitional elements
815:forum non conveniens
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446:Marriage
434:Contract
429:Capacity
400:Dépeçage
278:Domicile
247:Lex fori
86:Location
1059:6 March
986:Bermuda
936:only),
760:evasion
666:lacked
622:trustee
618:settlor
453:Divorce
110:Parties
1014:Jersey
956:, the
954:Monaco
926:Canada
904:comity
862:notary
837:per se
728:shares
603:states
572:choice
560:Trusts
424:Status
172:Renvoi
78:Signed
69:
59:
49:
950:Malta
938:Italy
930:China
895:situs
848:situs
732:bonds
686:child
601:Many
550:is a
546:, or
1061:2011
1028:and
730:and
542:The
441:Tort
143:and
1089:,
1032:).
875:or
772:or
762:of
1102::
1080:,
1052:.
1024:,
1020:,
1016:,
1012:,
1008:,
1004:,
1000:,
996:,
992:,
988:,
984:,
980::
964:,
952:,
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940:,
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654:,
113:14
1063:.
976:/
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879:;
531:e
524:t
517:v
65:)
55:)
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