Trusts of Land and Appointment of Trustees Act 1996

The following Property practice note provides comprehensive and up to date legal information covering:

  • Trusts of Land and Appointment of Trustees Act 1996
  • Trusts of land
  • Abolition of doctrine of conversion
  • Enhanced powers of trustees of land
  • Enhanced rights of beneficiaries
  • Enhanced powers of the court
  • Occupation rent

Trusts of Land and Appointment of Trustees Act 1996

The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996) came into force on 1 January 1997. Under it:

  1. the trust for sale is replaced by the trust of land

  2. the doctrine of conversion is abolished

  3. both the trustees and the beneficiaries are given additional powers and rights in relation to the trust property

  4. the court is given enhanced powers to make orders in relation to the trust

  5. the beneficiaries are given powers to remove and appoint new trustees

Trusts of land

Any trust (express, implied, resulting or constructive) which includes land as part of the trust property is a trust of land; this includes a trust for sale and a bare trust. This applies to all such trusts irrespective of when they were created, except in relation to land which is ‘settled land’ within the meaning of the Settled Land Act 1925 (SLA 1925).

However, TOLATA 1996 provides that any trust created after 1 January 1997 cannot be an SLA 1925 settlement unless it is created pursuant to an existing SLA 1925 settlement (eg by exercising a power to appoint or resettle the property on new trusts) and even then it is permissible to elect for the trust to be a trust of land. This will slowly result in the phasing out of strict settlements.

TOLATA

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