Abstract:
This article examines the trust as a tool for the transmission of wealth and discusses the duties of trustees and the rules by which they are bound. These restrictions give rise to some practical difficulties, especially in cases where the trust is of a long duration, or where the trustee wishes to undertake investments to enhance the value of trust property. The scope and operation of the English Variation of Trusts Act 1958 will be explored. It will be shown that the 1958 Act directly addresses these difficulties, but at the same time also requires the court to make difficult decisions in particular types of situations. In view of the fact that there is no equivalent to the 1958 Act in Singapore, this article discusses the various practical and legal steps that may be taken as alternatives. It will be concluded that trustees in Singapore are handicapped to some extent because the court does not have a general power to sanction variation of trusts, but this can be made up for with certain legal workarounds.