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Table of contents

  1. Problem
  2. Project
  3. Documents
  4. Updates

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Trust law arbitration

This is an upcoming project and work has not yet commenced on it

Problem (Back to top)

English trust law is an important global legal export and London is a world-leading centre for dispute resolution, including arbitration.

However, where trust law and arbitration meet, this jurisdiction is lagging behind its international competitors. At present, a clause in a trust instrument requiring disputes to be arbitrated is not binding.

A potential project investigating whether the Arbitration Act 1996 should be amended to make trust law arbitration clauses valid was proposed by the Trust Law Committee and supported by the Justice Committee, the Bar Council and the Society of Trusts and Estates Practitioners. 

As well as furthering the UK’s reputation as a centre for the resolution of international commercial disputes, the introduction of trust law arbitration could increase the competitiveness of the trust law services industry and create a new branch of business in the arbitration sector. These benefits have prompted other jurisdictions (including Guernsey, Singapore and some US states) to make provision for trust law arbitration. 

Project (Back to top)

The project will consider the merits of an arbitration system that facilitates trust disputes and consider how such a system might be designed. It will therefore engage several complex issues; for example compliance with human rights law, the need to take into account any interests of HMRC in the outcome of arbitration proceedings, and whether any change in the law should extend to all types of trust (including charitable trusts). 

Next steps

The Law Commission will commence work on the project as soon as resources allow.  

Further steps and their timings will be confirmed in due course. 

Documents (Back to top)

There are no documents published as part of this project currently.

Updates (Back to top)

There are no updates on this project currently.