Part 1Trusts
Chapter 8Powers of the court
Variation and termination of private trusts
I161Interests of negligible value
1
This section applies in relation to loss sustained by—
a
a beneficiary, or
b
a potential beneficiary,
(either such person being referred to in this section as “B”) as a consequence of the making of an arrangement to which section 58 applies.
2
The trustees are not liable to B for the loss if—
a
B was a beneficiary, or potential beneficiary, when the arrangement was made,
b
agreement by, or approval on behalf of, B to the arrangement (being agreement or approval in accordance with section 59) was not given, and
c
prior to the arrangement being made the court, on the application of the trustees or of any of the beneficiaries, was satisfied either—
i
that B’s interest was so remote as to be of negligible value, or
ii
that, in the event of B becoming a beneficiary, B’s interest would be so remote as to be of negligible value.
3
a
applies irrespective of when the trust was created, but
b
does not apply as respects a private purpose trust or a public trust.