Here in this brief article we explore some of the Beneficiary’s rights under the Trust Act 2019 (“Act”).

Right to information:

Historically, a beneficiary might have had no idea they were a beneficiary of a trust. The Act says that Trustees must now give basic trust information to every beneficiary.

Basic information includes: that a person is a beneficiary, details of the trustees (including appointment, removal, retirement) as well as their right to request additional Trust information.

Additional information includes Trust Deed and variations; records of Trust property, Trustee’s decisions, contracts, financial statements and other relevant trust documentation.

This change is to ensure beneficiaries have sufficient information to hold Trustees accountable if they are not acting in accordance with the terms of the Trust.

Withholding information:

In certain circumstances, it may not be appropriate for a trustee to disclose information to a beneficiary. This might arise where, for example, one beneficiary has received distributions and another beneficiary has not.

In deciding whether to disclose this information to a beneficiary, the trustees would need to consider matters such as the nature of the interest in the Trust held by the beneficiary and other beneficiaries, the likelihood of the beneficiary receiving trust property in the future, the age and circumstances of the affected beneficiary and other beneficiaries, the effect on the trustees, beneficiary and other beneficiaries of giving the information, and the intentions of the settlor at the time the Trust was created.