On 4 September 2025, the Law Commission released its <a href="https://lawcom.gov.uk/news/law-commission-launches-14th-law-reform-programme/" target="_blank" class="news-text_link">14th Programme of Law Reform</a>, setting out ten new projects alongside 17 existing ones to be progressed over the coming years. One of the continuing projects, following a reference from the Ministry of Justice, focuses on trust law arbitration. Currently, English law does not consider clauses in trust instruments requiring disputes between trustees and beneficiaries to be determined by arbitration to be valid or enforceable.
The project will consider whether and in what way, the law could accommodate such provisions, while also addressing complex issues such as whether creditors, minors, unborn or unascertained beneficiaries and those lacking capacity could be bound by an arbitral award. Importantly, disputes over the validity of the trust itself are excluded from the scope of review.
The consultation for the 14th Programme was held in 2021, but development was paused in February 2023 and later resumed following the General Election in July 2024. During this period, the Law Commission also undertook a separate review of the Arbitration Act 1996 (“<span class="news-text_medium">AA 1996</span>”), resulting in the enactment of the Arbitration Act 2025, which came into force on 1 August 2025.
The topic of arbitration in trust disputes is attracting growing international attention. For instance, in July 2025, the Swiss Arbitration Centre introduced Supplemental Swiss Rules for Trust, Estate and Foundation Disputes, which require identification and notification of all affected persons or entities (including unborn beneficiaries) to ensure they can comment on the arbitrators' appointment.
The Law Commission’s project will contribute to this broader debate, examining whether reforms are needed to align English law with emerging international practice while safeguarding the interests of vulnerable beneficiaries.
