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International and Commercial Trusts Law (LAWS0119)

This module is a study of the use of trusts in the modern world of private estate planning and commercial transactions.

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Part I of the module covers the modern law of private trusts, that is, the use of the trust in managing family wealth, with an examination of developments in the ‘offshore world’.

Part II covers the use of the trust in a variety of commercial transactions.

Throughout Parts I and II, we also consider the conceptual nature of the trust and the way in which it does or does not form a coherent part of the law of property, or the law of obligations, or both.

This is an advanced trusts course and students must have previously studied the common law of trusts in order to enrol. Students with an interest in commercial law and litigation will enjoy this module, and so will those who want to take an advanced private law course.

The module has been designed to sit alongside the modules on Restitution of Unjust Enrichment and on Commercial Remedies, and students can take all three of these in conjunction without any significant repetition of material.

Each week, students are expected to read cases, textbook chapters and articles for class discussion and/or to prepare answers to questions to be discussed in class. The teaching style is interactive: students are expected to ask and answer questions, make their own points, and debate issues with each other as well as the module teachers.

By the end of the module, students should have:

  • a solid understanding of the way that the trust device is used to manage family wealth and the various functions it may perform, such as to protect assets;
  • a solid grasp of the issues that arise in respect of controlling trustees’ powers, the rights of the objects of trusts, and the question of the extent to which the law facilitates the intentions of the settlors of trusts;
  • a solid understanding of the use of trusts in several important kinds of commercial transaction, and the differences that may exist between the rights, powers, and duties of trustees of commercial trusts as opposed to their family trust counterparts;
  • a sophisticated appreciation of the conceptual questions raised by the trust and the different ways in which those questions have been addressed.

Module syllabus

This module is subject to change.

The Modern Law of Private Trusts

  • Introduction: Modern Trusts Drafting
  • Introduction to Offshore Jurisdictions
  • Trusts, Tax and Estate Planning
  • Tax Mistakes, Rescission and Rectification
  • Reservation of Settlor's Powers and Shams
  • Protectors
  • Beneficiaries’ Rights to Information and Letters of Wishes
  • Exemption Clauses and the Irreducible Core of Trustee Duties
  • Arbitration Clause and 'No Contest' Clauses

Trusts in Commercial Transactions

  • Trusts in Private International Law
  • Commercial Uses of Trusts
  • Trusts and Bonds
  • Trusts and Intermediated Holding of Securities
  • Pension Trusts

The Conceptual Nature of the Trust

  • Comparative Trusts
  • The Nature of a Trust

Recommended materials

There is no textbook that covers the whole module. Success in the course requires a good understanding of key principles of trusts law, and so looking at a suitable trusts text will be helpful preparation for the course. Where reference is often made in the readings to a trusts text, the text used, written by Ben McFarlane and Charles Mitchell, is:

  • Hayton and Mitchell on the Law of Trusts & Equitable Remedies (14th edn, 2015).

Module reading lists and other module materials will be provided via online module pages, available at the beginning of term once students have enrolled.

Preliminary reading

None is required, but if you want to refresh your existing knowledge of trusts before starting the module, you could look at a trusts textbook. A recommended example of such a text, written by two of the module tutors, Ben McFarlane and Charles Mitchell, is:

  • Hayton and Mitchell on the Law of Trusts & Equitable Remedies (14th edn, 2015).

Key information

Module details
Credit value:30 credits (15 ECTS, 300 learning hours)
Convenor:Charles Mitchell (Term One);
Ben McFarlane (Tem Two)
Other Teachers:Sinéad Agnew;
Monica Bhandari
Teaching Delivery:20 x 2-hour weekly seminars, 10 seminars per term, Term One and Two
Who may enrol:Any UCL Master’s student
Prerequisites:Previous study of the common law of trusts
Must not be taken with:None
Qualifying module for:LLM in International Commercial Law;
LLM in International Banking and Finance Law;
LLM in Litigation and Dispute Resolution
Assessment
Practice Assessment:Take-home open book written examination
Final Assessment:Exam (100%)