ABSTRACT
On 22 November 2022 the Scottish Government introduced the Trusts and Succession (Scotland) Bill (hereinafter ‘the Bill’) whose overall aim is to modernise the law of trusts in Scotland and to attract international trust business. Among other things the Bill proposes to introduce a regulatory framework for private purpose trusts in Scotland which is contained in Chapter 6. Private purpose trusts are trusts which are not created for the benefit of one or more beneficiaries, but for the furtherance of a private purpose that is non-charitable. In seeking to introduce private purpose trusts, Scotland looked for inspiration offshore, notably the STAR legislation of the Cayman Islands and Guernsey trust law. The Scottish proposal, however, has arguably gone a step further by proposing a scheme that is even more flexible and user-friendly than that offered by the offshore models. This paper explores whether this radical break with the past is to be welcomed …
Braun, Alexandra, Private Purpose Trusts: Good for Scotland? (May 10, 2023), University of Edinburgh School of Law Legal Studies Research Paper Series No 2023/05.
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