To extend the jurisdiction of courts of law to vary trusts in the interests of the beneficiaries and to sanction dealings with trust property.
[4 December 1964]
(Format changes—E.R. 5 of 2018)
This Ordinance may be cited as the Variation of Trusts Ordinance.
In this Ordinance, unless the context otherwise requires—
discretionary interest (酌情權益) means an interest arising under the trust specified in section 35(1)(b) of the Trustee Ordinance (Cap. 29) or any like trust; principal beneficiary (主要受益人) has the same meaning as in section 35 of the Trustee Ordinance (Cap. 29); protective trusts (保護信託) means the trusts specified in section 35 of the Trustee Ordinance (Cap. 29) or any like trusts.[cf. 1958 c. 53 s. 1(2) U.K.]
Where property is held on trusts arising, whether before or after the commencement* of this Ordinance, under any will, settlement or other disposition, the court may if it thinks fit by order approve on behalf of—
any person having, directly or indirectly, an interest, whether vested or contingent, under the trusts who by reason of infancy or other incapacity is incapable of assenting; or
any person (whether ascertained or not) who may be or may become entitled, directly or indirectly, to an interest under the trusts as being at a future date or on the happening of a future event a person of any specified description or a member of any specified class of persons, so however that this paragraph shall not include any person who would be of that description, or member of that class, as the case may be, if the said date had fallen or the said event had happened at the date of the application to the court; or
any person unborn; or
any person in respect of any discretionary interest of his under protective trusts where the interest of the principal beneficiary has not failed or determined,
any arrangement (by whomsoever proposed, and whether or not there is any other person beneficially interested who is capable of assenting thereto) varying or revoking all or any of the trusts, or enlarging the powers of the trustees of managing or administering any of the property subject to the trusts:
Provided that except by virtue of paragraph (d) the court shall not approve an arrangement on behalf of any person unless the carrying out thereof would be for the benefit of that person.
Subject to the provisions of section 37(1)(b) of the District Court Ordinance (Cap. 336), the jurisdiction conferred by subsection (1) of this section shall be exercisable by the Court of First Instance. (Amended 25 of 1998 s. 2)
Nothing in this section shall apply to trusts affecting property settled by Ordinance.
Nothing in this section shall be taken to limit the powers conferred by section 12(2) of the High Court Ordinance (Cap. 4) or by section 56 of the Trustee Ordinance (Cap. 29). (Amended 92 of 1975 s. 58; 25 of 1998 s. 2)
[cf. 1958 c. 53 s. 1 U.K.]