The Hague Convention of the Law Applicable to Trusts and on their Recognition
was signed on 1 July
but came into force on 1 January
Summary of main provisions
The Convention seeks to harmonise the Private International laws of its signatories relating to trusts. The key provisions of the Convention are:
- each signatory recognises the existence and validity of trusts. However, the Convention only relates to trusts with a written trust instrument. It would not apply trusts which arise (usually in common law jurisdictions) without a written trust instrument.
- the Convention sets out the characteristics of a trust (even jurisdictions with considerable legal history relating to trusts find this difficult)
- the Convention sets out clear rules for determining the governing law of trusts with a cross border element.