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The field of Trusts law in Colombo, and all of Sri Lanka, is governed by the Trust Ordinance No. 9 of 1917. The ordinance makes provision for the creation of trusts for numerous purposes. A trust is typically a legal arrangement through which a person, termed a trustee, holds property on behalf of other persons, known as beneficiaries.
Managing a trust can be complex due to the intricate laws and responsibilities that it entails. Whether you are forming a trust, serving as a trustee, or are a beneficiary of a trust, you may need a lawyer to guide you through the process. Areas where legal help is crucial include establishing a proper trust structure, understanding your rights and duties as a trustee or beneficiary, resolving disputes over a trust, and ensuring that the trust complies with all legal requirements.
Under the Trust Ordinance in Sri Lanka, the creation of a trust requires a clear intention to create a trust, declaration of the trust either in writing or verbally, identifiable trust property, and the lawful purpose of the trust. The trustee(s) has fiduciary duties toward the trust property and beneficiaries. It's also worth noting that by law, trustees cannot profit from their position unless expressly permitted by the trust instrument or by law, and they must avoid any conflict of interest.
Any person who is capable of holding property can be a trustee. However, the person must consent to act as a trustee in a trust created during the trustor’s lifetime.
Unless the trust deed explicitly stipulates otherwise, it can typically be modified or revoked with the consensus of all beneficiaries, provided they are all competent to give their consent.
Courts in Sri Lanka supervise the administration of trusts. They have jurisdiction over controversies between trustees and beneficiaries and can intervene to ensure that a trustee is performing his or her duties in accordance with the trust’s terms and with laws.
Trusts in Sri Lanka are primarily regulated by the Trust Ordinance, No. 9 of 1917. Other relevant laws include the Civil Procedure Code, Roman Dutch law, and case law.
Yes, a person can act as a trustee of his or her own trust, providing he or she has the legal capacity to hold property. It is, however, recommended to appoint an additional trustee to prevent the trust from failing should the trustee pass away.
Additional resources where you can find more help include the Sri Lanka Law Commission for updates on trust law amendments, the Bar Association of Sri Lanka for finding accredited lawyers in the field of trusts, and the Department of Registrar of Companies where trust corporations are registered in Sri Lanka.
If you require legal assistance with trusts in Sri Lanka, you should reach out to a legal professional who specializes in trust law. They can provide legal advice tailored to your unique situation and help you navigate Sri Lanka’s legal landscape. As trust matters can be complex, it is vital to find a legal advisor who comprehends the intricacies of the trust law.
