30 years of trusts: Part  four

Please also see Part One, Part Two, Part Three and Part Five.

 

A 30‑year trust timeline

1991

Financial Services Commission Act 1989 and Financial Services (Investment and Fiduciary Services) Act 1989. The former establishes the Gibraltar Financial Services Commission (GFSC) and Gibraltar’s financial services regulatory framework. The latter brings a number of activities within the scope of this framework, including the activity of ‘holding out, or soliciting for or undertaking business, for profit or reward, in or from Gibraltar as a professional trustee’. These activities are defined as ‘controlled activities’ and are subject to a licensing regime supervised by the GFSC.

Financial Services (Conduct of Business) Regulations 1991. Introduces a number of duties and standards dischargeable by licensees, based around such concepts as integrity, skill, care and diligence, best market practice, know your client (KYC), information for customers, conflicts of interest, customer assets, financial resources and internal organisation.

1997

Hess v Line Trust Corporation Ltd.^[1] The Court of Appeal of Gibraltar rules, inter alia, that the Fraudulent Conveyances Act 1571 only applies to dispositions of property where the property could be taken in execution in Gibraltar. The President of the Court of Appeal states in his judgment: ‘It is common ground that the only dispositions of property which can be affected by the 1571 Act (which was replaced in England by section 172 of the Law of Property Act 1925) are dispositions of property which can be reached by execution. Execution is a local process.’ The Court upheld the decision in Perry v Zissis,^[2] which underlines the fact that in the absence of reciprocal provisions for the enforcement of judgments, the judgment of a court in country A cannot be enforced by execution in country B unless and until a judgment based on the earlier judgment has been obtained in country B.’ The case relates to a Gibraltar trust of which Line Trust Corporation is the trustee.

2000

Registered Trust Act 1999. Establishes a voluntary registration regime for private trusts, where the trustees want the trust to appear on the public register or where the terms of the trust deed provide that the trust must be registered.

2005

Stamp Duties Act 2005. Imposes stamp duty tax on any conveyance or transfer of Gibraltar real estate or any rights relating to Gibraltar real estate. Excludes any conveyance or transfer made for effectuating the appointment of a new trustee or the retirement of a trustee; or under which no beneficial interest passes in the property conveyed or transferred; or made to a beneficiary by a trustee or other person in a fiduciary capacity under any trust.

2006

Financial Services (Conduct of Fiduciary Services Business) Regulations 2006. Replaces the Financial Services (Conduct of Business) Regulations 1991. Applies specifically to fiduciary services business, including professional trustees.

2007

Financial Services (Occupational Pensions Institutions) Act 2006. Transposes EU legislation regulating the activities and supervision of institutions for occupational retirement provision. Although the Act allows for the establishment of pension schemes through vehicles other than trusts, almost all pension schemes are established as trusts in Gibraltar.

Financial Services Commissioner Act 2007. Repeals and replaces the Financial Services Commissioner Act 1989. Seeks to change the structure and remit of the GFSC.

2011

Income Tax Act 2010. Constitutes a significant overhaul of Gibraltar’s income tax regime and, among other things, changes the way that trusts and trust beneficiaries are taxed under Gibraltar law. Section 13 provides that only trusts that are resident in Gibraltar are taxable in Gibraltar. Section 12 provides that tax must be paid by any person ordinarily resident in Gibraltar on income received by them from a trust, where the ultimate source of that income is taxable in Gibraltar.

2013

Companies, Partnerships and Trusts (Miscellaneous Amendments) Act 2012. Amends the Trustees Act (among other Acts) to impose an obligation on trustees to keep proper books of account as well as an obligation to maintain records identifying settlors, trustees and beneficiaries of trusts.

2014

Perpetuities and Accumulations (Amendment) Act 2014. Increases the maximum perpetuity period under Gibraltar law from 100 years to 250 years.

Trustees (Amendment) Act 2014. Introduces a new section into the Trustees Act conferring on the courts the power to relieve a trustee from personal liability in circumstances where that trustee has acted honestly and reasonably, and ought fairly to be excused for the breach of trust and for omitting to obtain the directions of the court in the matter in which they committed such breach.

Insolvency Act 2011. Contains a provision that enables asset protection trusts to be established in Gibraltar. Section 419A provides that certain dispositions shall not be voidable at the instance of or upon application by any creditor of the settlor provided certain conditions are complied with.

2015

Trusts (Private International Law) Act 2015. Ensures that where a matter relating to a Gibraltar trust comes before a Gibraltar court, the court must apply only Gibraltar law to that matter. It specifically provides that no rule of foreign law can affect or be applied to any question before the court in relation to those matters.

Purpose Trusts Act 2015. Permits the establishment of a trust for a purpose or purposes other than charitable purposes, subject to the provisions and limitations set out in that Act.

Private Trust Companies Act 2015. Provides for the establishment and registration of private trust companies (PTCs) in Gibraltar. A PTC registered under, and operating within, the PTC registration regime is exempted from the requirement to obtain a professional trustee financial services licence from the GFSC.

2016

Proceeds of Crime Act 2015. Imposes extensive due diligence and KYC requirements on ‘relevant financial businesses’ including professional trustees.

Partnership, Trustees and Tax Information (Miscellaneous Amendments) Act 2016. Amends, among other acts, the Trustees Act and makes it a criminal offence for trustees of a trust to fail to maintain proper books of accounts or records identifying settlors, trustees and beneficiaries.

2017

Financial Services (Pensions) Regulations 2017. Creates new controlled activities of establishing, operating or winding up personal pension schemes, thereby requiring any person providing those services or undertaking those activities to apply to the GFSC for a financial services licence. Persons with a class VII (professional trustee) licence are exempted.

Private Foundations Act 2017. Permits the establishment of private foundations under Gibraltar law. Gibraltar foundations are subject to a registration regime overseen by the Registrar of Foundations and can be set up for the attainment of any purpose or purposes, as well as for the benefit of a class of beneficiaries.

Financial Services (Investment and Fiduciary Services) Act (Amendments) Regulations 2017. As a consequence of the introduction of the Private Foundations Act 2017, the regulations are published to amend the Financial Services (Investment and Fiduciary Services) Act. Includes a new controlled activity of ‘holding out, or soliciting for or undertaking business, for profit or reward, in or from Gibraltar as a professional foundation councillor’.

Register of Ultimate Beneficial Owners Regulations 2017 (renamed the Register of Ultimate Beneficial Owners, Nominators and Appointors Regulations 2017). Transposes the EU Fourth Anti‑Money Laundering Directive (4AMLD) beneficial ownership register requirements.

Trustee Act (Amendment) Regulations 2017. Makes it a criminal offence for a trustee to fail to comply with requests for information.

2019

Financial Services (Occupational Pensions Institutions) Act 2006 (Amendment) Regulations 2018. Amends the Financial Services (Occupational Pensions Institutions) Act 2006 in order to give effect in Gibraltar to Directive (EU) 2016/2341. Introduces a requirement for institutions for occupational retirement provision with fewer than 100 members to register with the GFSC as a small scheme.

2020

Financial Services Act 2019 and its accompanying regulations. Repeals the entire financial services legislative framework. The Act provides a modern legislative framework for all financial and professional services sectors in Gibraltar, including professional trustees, professional foundation councillors, professional pension scheme trustees and occupational pension schemes.

2021

Proceeds of Crime (Miscellaneous Amendments) Act 2021. Makes a number of significant changes to the Trustees Act, including:

• The due diligence and KYC information that a trustee must obtain and update in relation to the various parties regarding the trust.
• The due diligence and KYC information that a trustee must obtain from any service provider that it engages for the provision of financial services.
• An obligation to keep a record of the above information, as well as the actions the trustees took to obtain it.
• An obligation to notify counterparties who provide financial services to the trustees that they are acting in a trustee capacity and to provide them with due diligence information on the trust.
• A provision setting aside any flight clause that may operate to facilitate a criminal offence; frustrate an ongoing criminal investigation by a law enforcement authority; or avoid, defeat or frustrate any right or power of a law enforcement authority to enforce, invoke or apply any provision of Gibraltar law, which aims to prevent or combat money laundering, terrorist financing, proliferation financing or tax evasion.

 

A 30‑year trust timeline

1997

Handover of Hong Kong from the UK to China. Although not itself a trust or estate law development, from 1983 when the Sino‑British Joint Declaration was nearly finalised, it led to more people in Hong Kong considering offshore ownership of assets.

2006

Abolition of estate duty on Hong Kong‑situs assets, including those owned through controlled foreign companies.

2013

Trustee Ordinance. Amendments relating to limiting the use of trustees’ exemptions, increased default administration powers, and reserved‑settlor powers provisions.

Perpetuities and Accumulations Ordinance. Amendments permitting perpetual trusts.

2014

Poon Lok Otto v Kan Lai Kwan Kay and HSBC International Trustee Ltd.^[3] The Hong Kong Court of Final Appeal finds that where one spouse has significant de facto control over a trust fund, despite not being trustee, that fund can be treated as a matrimonial asset in divorce cases.

2018

Trust and company service provider (TCSP) licensing regime. Requires trust and corporate service providers to register with the Hong Kong Companies Registry for anti‑money laundering and countering terrorist financing purposes.

Companies (Amendment) Ordinance 2018. Introduces new requirements on the keeping of significant controllers registers by companies. Requires companies to establish, maintain and provide to government officials on request a register containing details of their significant controllers. Significant controllers include those holding more than 25 per cent of the shares or voting rights in a company.

2019

Zhang v DBS Bank (Hong Kong) Limited.^[4] Finds that trustees could rely on very broad anti‑Bartlett provisions, provided they do not abrogate their irreducible core of duties.

Re Estate of Chen Din Hwa.^[5] Finds that Hong Kong law is consistent with common practice in most common‑law jurisdictions in that the statutory power of advancement can be exercised while an estate is still in administration and not only after the residuary estate is ascertained.

 

A 30‑year trust timeline

1990

Attorney General v Tel Aviv University.^[6] The provisions of Trust Law, 5739‑1979 (the Trust Law) relating to charitable trusts are cogent and provisions in a will stating to the contrary are void.

1993

The Society of the Talmudic College Porat Yosef v Tova Gol Shaulof.^[7] The Trust Law does not apply to a religious trust created before the enactment of the Trust Law and its affairs are under the jurisdiction of the relevant religious court.

1994

Avinoam Wallas v Nechama Gat.^[8] The Supreme Court of Israel (the Supreme Court) recognises the creation of an ‘implied trust’ under an oral contract based on the behaviour of the parties.

1996

Ayala Zaks Abramov v Land Registry Officer.^[9] A trust is a legal relation and not a legal entity.

1998

Relaxation of foreign currency controls. The requirement applicable to persons and private corporations to obtain a permit in order to hold foreign currency outside of Israel and conduct transactions in foreign currency is abolished, thereby abolishing the exchange control supervision that was in force until then.

1999

Attorney‑General v Lishitzky.^[10] When there is a non‑fundamental flaw in a will and the wishes of the deceased are clearly evident from the will itself, the flaw may be overcome by application of the Trust Law and the use of a trust.

2000

Weinstein v Fox.^[11] When a trustee of a testamentary private trust is appointed by the court, only the court is authorised to remove them from their position as such, regardless of whether the beneficiaries agreed otherwise.

2002

Ben‑Gurion University of the Negev v Adv. Dan Ben Basat.^[12] The Supreme Court holds that an undertaking to grant a gift is valid only if done in accordance with the provisions of the Gift Law, 1968 and when it can be inferred from the deed gift that the donor intended to execute it during their lifetime, even if in practice the donor had died before the gift was executed in full. This judgment is highly important in order to make a valid transfer of assets from the settlor during their lifetime to the trustee.

2003

Law for the Amendment of the Income Tax Ordinance (Amendment no. 132), 5762‑2002. The Israeli tax system undergoes a fundamental reform. Tax is imposed on all worldwide income of an Israeli resident (a personal approach). Until now, tax was imposed only on income produced or accrued in Israel (a territorial approach).

Shoshanna Tzimbler v Rebecca Turgeman.^[13] When two parties enter a sale contract with respect to real property and the buyer paid the consideration in full yet the property is still registered in the name of the seller (or the lawful heirs), then the buyer has a semi‑possessory right in the property (an equitable right) and the seller holds the property in a capacity of a trustee for the benefit of the buyer under an ‘Israeli‑made constructive trust’.

2005

Public Trustee v Jacob Agmon.^[14] When a trustee of a charitable trust is appointed by the court, only the court is authorised to remove them from their position as such, regardless of the terms of the trust.

2006

Law for the Amendment of the Income Tax Ordinance (Amendment no. 147), 5765‑2005. Introduces new provisions concerning the taxation of trusts.

2007

Law for the Amendment of the Income Tax Ordinance (Amendment no. 168 and temporary order), 2008. Introduces a ten‑year exemption from tax and reporting obligations for new immigrants with respect to their foreign‑sourced income. This exemption generally applies to trusts created by new immigrants.

2008

Lnl Reg Trust v Levine.^[15] The Tel Aviv District Court effectively recognises a foreign trust entity from Liechtenstein as a legal entity entitled to litigate in Israel.

L.L. v Administrator General.^[16] When a trustee is appointed in a testamentary trust to hold assets for the benefit of an incapacitated person, they should be subject to the legal and regulatory arrangement applicable to guardians. This includes limitations on the management of the assets as well as reporting obligations to the administrator general.

Trustees of the trusts of the Sephardic community in the holy cities of Tzfat and Meron by the Administrator Rabbi Shlomo Shlush v Tomer Shimon Kamus.^[17] The Supreme Court incidentally declares the existence of a charitable trust with respect to a real property based on the factual history of the property, despite the fact that neither of the parties had initiated proceedings under the Trust Law to declare it as such.

2009

Rabbi Eliezer Cahanman v Rabbi Shmuel Markovitz.^[18] Although the Trust Law allows any ‘interested party’ to file a claim to the court with respect to a trust, the Supreme Court further requires that the true nature of the dispute be related to the trust and a claim deriving from and relating to an internal and unrelated dispute between the persons involved shall not be considered as a claim under the Trust Law.

2011

The Receiver v Marsha Tauber Tov.^[19] A trustee purchased real property in trust and filed a report accordingly to the Israel Tax Authority. Fifteen years later, the trustee was declared bankrupt and the bank initiated proceedings to liquidate the property, as no caveat note indicating the existence of the trust was registered. The Supreme Court holds that since the trust has been properly reported to the Israel Tax Authority, it is a ‘true trust’ and not a ‘sham trust’. As such, the rights of the beneficiaries prevail over those of the bank. The trustee is not required to register a caveat note in the Land Registry indicating the existence of the trust in order for the rights of the beneficiaries to prevail.

2013

Doe v Doe.^[20] The ‘presumption of trust’ provides that where the ownership of a property is registered under the name of ‘A’ although the funds used for its purchase originated in ‘B’, then in the absence of an indication that the funds were a gift, A is considered to hold the rights in the property in trust for the benefit of B.

Doe v Doe.^[21] Under the Trust Law, the authority to manage the trust is vested in the trustee. The beneficiaries are not entitled to sell the trust assets or intervene in their management unless the terms of the trust state otherwise. Although the Trust Law allows a beneficiary to apply to the court with respect to the trust, such a beneficiary must first demonstrate a reasonable ground for their application and, even so, the court shall discuss the application only if it deems it appropriate.

2014

Law for the Amendment of the Income Tax Ordinance (Amendment no. 197), 2013. Reforms the tax regime applicable to trusts and reduces the exemptions from tax and reporting granted to foreign trusts.

2016

Legal Capacity and Guardianship Law (Amendment no. 18), 5776‑2016. Introduces an enduring power of attorney (EPA) into Israeli legislation. The EPA allows an agent to act for the benefit of an appointor in certain matters and under certain limitations, including the management of assets. The EPA serves as a complementary instrument to a trust.

Doe v Doe.^[22] A trust created by a contract that is intended to begin upon the death of the settlor is invalid under the Succession Law of 1965. The creation of such a trust validly must be done by a trust deed (Hekdesh) executed in accordance with the provisions of the Trust Law.

2020

Aliza Weizman v Parcel 51 in Block 7060 Ltd.^[23] One of the beneficiaries of a trust that is without a time limit may not bring about the termination of the trust with respect to them alone, unless such termination is possible under the terms of the trust.

 

A 30‑year trust timeline

1994

Yeong Ah Chee v Lee Chong Hai & Anor and other appeals.^[24] Affirms the requirements of trust: ‘The 3 essentials of a valid trust are: (a) certainty of words; (b) certainty of subject; and (c) certainty of object.’ The trust deeds in all appeals except Appeal No.5 are invalid due to uncertainty of subject as beneficial ownership of the trust property passed to the purchasers when the sale of the lands took place before the trust deeds were executed. The Appeal No.5 trust deed is valid despite uncertainty of subject because the trustees at the time of signing the deed were the owners of the trust property in question both at law and equity.

1995

Public Trust Corporation Act 1995. Repeals the Public Trustee Act 1950. Establishes and governs Amanah Raya (AR). AR assumes the role of the Department of the Public Trustee and Official Administrator (the Department). All written laws affecting the Department in force immediately before the appointed date will, until amended or revoked, continue to be in force as if the Act has not been passed. The Probate and Administration Act 1959 is amended, since AR assumes the role of the Department.

1996

Labuan Offshore Trusts Act 1996. Allows purpose trusts, spendthrift trusts, special trusts and charitable trusts. Under this Act, settlors and beneficiaries can be foreigners, assets can be located in different countries, and the governing law of Labuan offshore trusts need not be Malaysian law. If an offshore trust is validly created, courts will not vary it, set it aside or recognise the validity of any claim against the trust property pursuant to a law or an order of a court of another jurisdiction, except for succession rights, etc.

2005

Amendment to the Trustees (Incorporation) Act 1952. Allows that trustees can apply for a certificate of registration to become a body corporate and have perpetual succession, a common seal and the power to sue and be sued.

Koperasi Wanita Sarawak Bhd & Anor v Robert Sim Teck Hock.^[25] Reaffirms Yeong Ah Chee: a trust is only valid if the title to the property is vested in the trustee completely and if the trust has been validly declared. A mere application letter does not create any title right or interest in the land. A trust cannot be created over the mere application letter for the land.

Espl (M) Sdn Bhd v Radio & General Engineering Sdn Bhd.^[26] The Court of Appeal of Malaysia recognises that a trust is an exception to the privity doctrine.

2010

Labuan Offshore Trusts (Amendment) Act 2010.^[27] Amends the Labuan Offshore Trusts Act 1996. Allows a Malaysian resident to set up and be the beneficiary of a Labuan trust (see s.9 of the amended act). New foundation and trust laws allow local investors to not only hold overseas properties and assets in Labuan trusts and foundations but also local properties.

Labuan Islamic Financial Services and Securities Act 2010. Section 150 allows the establishment of Labuan Islamic trusts. All provisions of the Labuan Trusts Act 1996 shall apply to Labuan Islamic trusts. Allows Shari’a‑compliant trusts to be created.

Takako Sakao v Ng Pek Yuen & Anor.^[28] Establishes that s.433B of the National Land Code does not apply to a constructive trust.

2014

PECD Bhd (in liquidation) v Amtrustee Bhd.^[29] Clarifies principles governing the Quistclose trust that have not been so clearly enunciated by other courts in other jurisdictions. The decision holds that a beneficiary of a Quistclose trust could, in law, be a person who was not a provider or payor of the trust money. The court accepts the principle set out in Barclays Bank Ltd v Quistclose Investments Ltd,^[30] which states that where a loan is made for the purpose of paying identified existing creditors, and where the borrower became insolvent and there was a dispute between those creditors and the lenders, the creditors should succeed if the primary purpose was still capable of being carried out.

2018

Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018.

2020

Labuan Business Activity Tax (Amendment) Act 2020.

Chin Jhin Thien & Anor v Chin Huat Yean @ Chin Chun Yean & Anor.^[31] The federal court expressly recognises the doctrine of secret trusts and deems it to be applicable in Malaysia. In the lower courts, the law of trusts in Malaysia has been underdeveloped and largely follows that of English and Welsh law. Hence, the general rules that apply to trusts in English law are also applied in Malaysian law in relation to trusts and wills.

 

A 30‑year trust timeline

1992

Inaugural meeting of STEP Suisse Romande on 29 September. It is the first STEP branch outside of the UK.

1994

Re the WKR Trust. The Zurich District Court rules that the trust in question has the characteristics of a company under the Swiss private international law rules. Applying Guernsey law and jurisprudence, the structure was held to be a sham.

1999

Recognises 125 years since the first Swiss case law on trusts: Pugh and Weathers v Receiver of Schlesinger’s bankrupt estate.

2007

Guidelines are issued on behalf of the Swiss Land Registry dealing with the ownership of Swiss real estate by trusts.

Ratification of the Hague Convention on the Law Applicable to Trusts and on their Recognition (the Convention); the second civil‑law jurisdiction to ratify.

Formation of the Swiss Association of Trust Companies (SATC), where Swiss STEP members were the initial driving force. The SATC’s purpose is to engage in the furtherance and development of trustee activities in Switzerland, to ensure a high level of quality and integrity and the adherence to professional and ethical standards in the trust business in Switzerland. The SATC has since grown into an organisation of 32 member trust companies.

The Swiss Tax Conference issues Circular No 30 concerning the treatment of trusts for tax purposes in Switzerland.

Robert Palmer’s Estate: X et al v Y.^[32] The Ticino Court of Appeal decides the first trust case to be considered after the ratification of the Convention by Switzerland. The case highlights the difference between the powers and duties of an executor/trustee and a court‑appointed administrator of an estate in a civil‑law jurisdiction. The case is subsequently confirmed by the Federal Supreme Court of Switzerland (the Supreme Court).

2008

The Swiss Federal Tax Administration issues Circular No 20 confirming the application of Circular No 30 to trusts in relation to federal income tax and withholding tax.

The Swiss Bankers Association issues guidelines (CDB 08) concerning due‑diligence requirements for the opening of bank accounts for trusts.

2009

A v the Federal Prosecutors Office. The Federal Criminal Court of Switzerland rules on beneficiaries’ standing to challenge a freezing order.^[33] The case is subsequently confirmed by the Supreme Court.

2011

The Federal Administrative Court of Switzerland decides that the beneficiary of an irrevocable discretionary trust with an underlying company holding a bank account has only an expectation and is not the ‘beneficial owner’ of such bank account.

2012

Rybolovlev v Rybolovleva.^[34] Against the background of a multi‑billion dollar divorce, the Supreme Court, while giving recognition to the trust under the Convention, decides that the husband remains the economic owner of the property transferred to the trust due, inter alia, to his position as protector and because of the clawback mechanism in Swiss matrimonial regime rules.

The SATC issues a white paper setting out proposals for the regulation of trustees in Switzerland.

2013

STEP Suisse Romande changes its name to STEP Geneva.

2015

A v Federal Tax Authority. The Federal Administrative Court of Switzerland rules on stamp duty related to a foreign grantor trust. The decision is subsequently confirmed by the Supreme Court.

2016

Formation of the Swiss and Liechtenstein STEP Federation.

The Swiss Bankers Association issues updated guidelines (CDB 16) on the identification of discretionary beneficiaries of trusts and foundations.

2019

The Swiss National Council approves the ‘Regazzi Initiative’ promoting the introduction of a substantive domestic Swiss trust law. An expert group, including Swiss STEP members, commences work on the project and a public consultation on the draft trust law text opened in 2021.

2020

Financial Institutions Act (FINIA) and implementing ordinance. Introduces compulsory licensing regulations for trustees in Switzerland. Trustees now require a licence from the Swiss Financial Market Supervisory Authority (FINMA) to be able to conduct trustee services from Switzerland. The implementation transition period to 31 December 2022 begins, by which time all trustees operating in Switzerland must have applied to FINMA for a licence, and before making that licence application must be affiliated to an independent supervisory organisation (SO). FINMA is therefore responsible for authorising registration and reviewing bodies, but not for supervising them.

A v C SA. The Supreme Court rules on the heirs’ request to obtain information from the executor on assets held in a foreign trust.

A joint STEP‑SATC delegation meets with FINMA to assist in the implementation of FINIA and the implementing ordinance in relation to trustees.

FINMA licences the fifth SO, thus completing the establishment phase of the institutional conditions for the implementation of FINIA. FINMA notes that no further SO applications are pending.

2021

A joint STEP‑SATC delegation meets FINMA virtually to assist in the implementation of FINIA and the implementing ordinance in relation to trustees.

A public consultation on the draft substantive Swiss trust law is underway.^[35]

 

A 30‑year trust timeline

1994

Uniform Prudent Investor Act. Published by the Uniform Law Commission, the Act provides rules governing actions of trustees with respect to investment of trust property. It is currently adopted by 46 states and territories.

1997

Alaska and Delaware are the first states to adopt asset protection trust legislation, allowing for irrevocable, discretionary self‑settled trusts that mitigate claims from the settlor’s subsequent creditors. Today, 19 states have domestic asset protection trust legislation.

1996

Small Business Job Protection Act. Makes a major change to taxation of foreign trusts by establishing a clear objective test to distinguish between what is a US taxable trust and what is a non‑taxable foreign trust.

1998

Although South Dakota (1983) and Delaware (1986) acted earlier, seven states pass legislation abolishing the common‑law rule against perpetuities. Today, a majority of states have either repealed the rule entirely for certain types of trust or have adopted very long maximum terms.

2000

Uniform Trust Code. Promotes interstate commerce and consistency of rules governing trusts. It is currently adopted by 36 states and territories.

2015

Uniform Trust Decanting Act. Provides a method for reforming the terms of an irrevocable trust within reasonable limits that ensure the trust will achieve the settlor’s original intent. It is currently adopted by 13 states and territories.

2017

Uniform Directed Trust Act. Provides clear functional rules allocating authority under a trust while preserving fiduciary safeguards for beneficiaries. Delaware originally enacted directed trust legislation in 1985. The Act is currently adopted by 17 states and territories.^[36]