Abstract:
Modern attitudes to disposition of wealth and the changing nature of trust instruments have promoted the desire for more reserved powers for settlors in modern trusts. This article first discusses the various factors driving the demand for such reservations, and the benefits from such use, before considering the concerns over the extent of such reservations. With some jurisdictions looking set to amend their trust regimes to accommodate the demand of settlors and to liberalise the allowable degree of such reservations, this article articulates the proper parameters that should be set for such reservations, to ensure that the fundamental concept of trust – under which the trustee is held to strict fiduciary duties towards the beneficial owners – is not prejudiced by such a trend.