Introduction and Overview Part 1 – Trusts
7.Part 1 of the Act makes provision in relation to the following aspects of trust law:
	appointment, assumption, resignation, removal and discharge of trustees,
	decision-making by trustees,
	powers and duties of trustees,
	contractual rights, damages and the validity of certain transactions and documents,
	duration of trusts,
	private purpose trusts,
	protectors, and
	powers of the court.
8.The trusts provisions of the Act implement the recommendations contained in the Report on Trust Law published by the Scottish Law Commission(1) (“Report on Trust Law”). Any references in these Explanatory Notes to a recommendation are to a recommendation set out in the Report on Trust Law, unless otherwise indicated.
9.The Act provisions on trusts replace all existing general trusts legislation, other than that dealing specifically with charitable and / or public trusts or other specific forms of trust such as trust deeds for creditors. Charitable trusts are also governed by charity law in the Charities and Trustee Investment (Scotland) Act 2005, though provisions in the Act cover general aspects of trust law that apply equally to public and charitable trusts and to private trusts; so to that extent the Act may be relevant to charitable, public and other specific forms of trusts. In places specific provision is made in the Act for the application of its provisions. On the interaction with charity law, a charitable trustee for a charity which takes the legal form of a trust will need to be aware both of the Scots law of trusts and Scots charity law. For instance, charities legislation sets out standards of care expected of a charity trustee, while the Act sets out statutory powers of a trustee. If there is an apparent conflict between two statutory provisions — for example, where one provision is a general statement on trust law and the other is a specific provision on charity law — the courts may apply the more specific provision.
10.While the Act replaces existing trust legislation, it does not provide a comprehensive statutory statement of trust law in Scotland. The Scots common law of trusts, where it is not altered by provision made in the Act, will remain operative and will apply alongside the Act provisions.(2)