Land And Conveyancing Law Reform Act 2009
Solicitors advising clients in relation to trusts, including will trusts, should be aware that, since 1 December 2009, the Land and Conveyancing Law Reform Act 2009 is in force.
Existing will trusts and settlements
It is not necessary to update wills or trusts already made by clients to reflect the act. For instance, reference in existing wills to the Settled Land Acts (which have been repealed since 1 December 2009) or to perpetuity periods (which are no longer necessary after 1 December) will not be invalid.
However, in the event that a client is reviewing his will for other reasons, continuing to make reference to these provisions is now outdated. Therefore, it will be best practice to update an existing will to reflect the act at such an appropriate opportunity.
The act applies to all will trusts and settlements currently in force. Practitioners should be aware that the act therefore now applies in the interpretation of the provisions of such existing will trusts and settlements.
New will trusts and settlements
The main provisions of a standard will and trust precedent will likely require some amendment to reflect the changes introduced by the act. Practitioners should fully understand the provisions of the act so that appropriate advice can be given to clients and their precedents can be updated. Particular attention will be required in advising clients on trusts of land, life interest trusts and discretionary trusts, whether made under a will or inter vivos.
The Law Society held a CPD event on 25 September 2009 that included details of these issues. The DVD and notes can be purchased directly from the Law Society. Both the Law Society and STEP will be providing further CPD courses in 2010. It is understood that various third-party publications will be updating their will and trust precedents in the early part of next year.