54 Procedure when trustee decides to give no information

(1)

This section applies in relation to a trust if, as a result of 1 or more of the following circumstances or events, no beneficiary has any trust information:

(a)

the trustee cannot identify any beneficiary to whom information can be given:

(b)

the trustee decides under section 51(2)(b) to withhold all of the basic trust information from all beneficiaries:

(c)

the trustee decides under section 52(2) to refuse a request for trust information.

(2)

The trustee must apply to the court for directions in relation to—

(a)

whether the trustee’s determination that there is no beneficiary to whom information can be given, or to withhold information or refuse a request for information, is reasonable in the circumstances; and

(b)

the alternative means by which the trustee can be accountable and the trust can be enforced.

(3)

However, the trustee is not required to apply to the court for directions if—

(a)

the period during which no beneficiary has any trust information is less than 12 months; and

(b)

at the end of that period, the trustee gives to at least 1 beneficiary of the trust the basic trust information.

(4)

In giving directions under this section, the court must take into account the following principles:

(a)

trust information may be withheld from all beneficiaries only in exceptional circumstances:

(b)

alternative means of enforcing a trust pending disclosure of information to beneficiaries must be consistent with the objectives of the trust and not adversely affect its administration.