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  • Part 3: Part 3: Choice of Governing Law; Place of Administration

    • Article 9 – Governing Law

      (1) If the Trust Instrument explicitly specifies the law of a particular jurisdiction as the Trust's governing law, that specification is conclusive unless the specified law is incapable of applying.
      (2) If the Trust Instrument contains no such explicit specification or if the specified law is incapable of applying, but the instrument necessarily implies that the law of a particular jurisdiction is the Trust's governing law, that so implied law is the governing law of the Trust.
      (3) If the Trust Instrument contains no such explicit specification or if the specified law is incapable of applying, and there is no such necessary implication from the instrument or the implied law is incapable of applying, the Trust's governing law is the law of the jurisdiction that is most closely connected with the Trust.
      (4) In deciding what jurisdiction is most closely connected with the Trust, the following may be taken into account:
      (A) where the Trust is to be administered;
      (B) where the Trust Property is located;
      (C) the domicile and usual address of the Settlor and the Trustee;
      (D) the domicile and usual address of the Beneficiary;
      (E) the objects of the Trust and where those objects are to be fulfilled; and
      (F) any other relevant matter.
      (5) A law is incapable of applying to a Trust if the law does not provide for the kind of Trust.
      Amended (as from 24th December 2017).

    • Article 10 – Provision for change of Governing Law

      (1) Where a term of a Trust so provides, the Governing Law may be changed to or from the laws of the QFC, in the manner prescribed by the Terms of the Trust, if:
      (A) in the case of a change to the laws of the QFC by a Trust, such change is recognised by the Governing Law previously in effect; or
      (B) in the case of a change from the laws of the QFC to a new Governing Law, the new Governing Law would recognise the validity of the Trust and either all the powers and provisions of the Trust remain enforceable, capable of being exercised and so taking effect or, prior to the change, the Trustee obtains the approval of the QFC Court to the change.
      (2) Where the Governing Law of the Trust changes to the laws of the QFC, that Trust will for all purposes be a QFC Trust.
      (3) A change in the Governing Law will not affect the legality or validity of, or render any Person liable for, anything done before the change.
      (4) If a Trust becomes a QFC Trust, the Trustee may:
      (A) exercise any power conferred on the Trustee to postpone the date of termination of the Trust without reference to any limitations expressed on that power by reference to a termination or perpetuity period of any other jurisdiction; and
      (B) if no power is conferred on the Trustee to postpone the date of the termination of the Trust, apply to the QFC Court for an order to confer such power.
      Amended (as from 24th December 2017).

    • Article 11 – Matters determined by Governing Law

      (1) Subject to Article 11(2), all matters arising in regard to a Trust which is for the time being governed by the laws of the QFC or in regard to any disposition of Property upon the Trust will be determined in accordance with the laws of the QFC and without reference to any Foreign Law.
      (2) Subject to Articles 12, 13 and 14, Article 11(1) will:
      (A) not validate any disposition of Property which is neither owned by the Settlor nor is the subject of a power in that behalf vested in the Settlor;
      (B) not validate any Trust or disposition of immovable Property situated in a jurisdiction in which such Trust or disposition is invalid according to the laws of such jurisdiction;
      (C) not validate any testamentary Trust or disposition which is invalid according to the laws of the testator's last domicile;
      (D) not affect the recognition of Foreign Laws in determining whether the Settlor is or was the owner of the settled Property or is or was the holder of a power to dispose of such Property;
      (E) not affect the recognition of the laws of its place of incorporation in relation to the capacity of a corporation; and
      (F) not affect the recognition of Foreign Laws prescribing generally, without reference to the existence or Terms of the Trust, the formalities for the disposition of Property.
      Amended (as from 24th December 2017).

    • Article 12 – Limitations in Foreign Law

      (1) Unless the Settlor has acted in bad faith, none of the matters in Article 12(2) will:
      (A) render void, voidable or defective:
      (i) a Trust governed by the laws of the QFC
      (ii) a disposition of Property to be held in Trust that is valid under the laws of the QFC
      (B) affect the capacity of a Settlor or disposition;
      (C) deprive a Trustee or Beneficiary, or any other Person, of any right, under a Trust or disposition; or
      (D) make a Trustee or Beneficiary, or any other Person, liable under a Trust or disposition.
      (2) The reasons under Article 12(1) that may not be relied on are the following:
      (A) that the laws of a foreign jurisdiction prohibit or do not recognise the concept of a Trust;
      (B) that the Trust or disposition voids or defeats any rights, claims or interest conferred by a Foreign Law upon a Person because of a personal relationship with the Settlor or any Beneficiary or by way of Heirship Rights; or
      (C) that the Trust or disposition contravenes a Foreign Law or a foreign judicial or administrative order, arbitration award or action intended to recognise or give effect to a right, claim or interest referred to in Article 12(2)(B).
      Amended (as from 24th December 2017).

    • Article 13 – Heirship Rights

      To the extent permitted by the laws of the QFC, an Heirship Right conferred by Foreign Law, including laws of the State, in relation to the Property of a living Person will not be recognised as affecting the ownership of immovable Property in the State and movable Property wherever it is situated for the purposes of Article 11(2)(A)and(B) or for any other purpose.

      Amended (as from 24th December 2017).

    • Article 14 – Foreign Judgments

      The judgment of a court in a jurisdiction outside the QFC will not be recognised or enforced or give rise to any estoppels insofar as it is inconsistent with Articles 12 and 13.

      Amended (as from 24th December 2017).

    • Article 15 – Place of administration

      (1) The Terms of the Trust designating the place of administration are valid and conclusive if:
      (A) a Trustee's principal place of business is located in or a Trustee is a resident of the designated place of administration; or
      (B) all or part of the administration occurs in the designated place of administration.
      (2) A Trustee is under a continuing duty to administer the Trust at a place appropriate to its purposes, its administration, and the interests of the Beneficiaries or in furtherance of its purposes and in accordance with the Terms of the Trust.
      (3) Without precluding the right of the QFC Court to order, approve, or disapprove a transfer in furtherance of the duty prescribed in Article 15(2), the Trustee may transfer the Trust's place of administration to another jurisdiction outside the QFC.
      (4) In connection with a transfer of the Trust's place of administration, the Trustee may transfer some or all of the Trust Property to a successor Trustee designated in the Terms of the Trust.
      Amended (as from 24th December 2017).