by the Parliamentary Under Secretary of State
Baroness Ashton of Upholland
My Right Honourable and Noble Friend, The Lord Chancellor has approved proposals for the Official Solicitor and Public Trustee (OSPT) to retire from the bulk of his existing caseload of trusts and estates work over the next two years. This follows a recommendation in April 2004 in an NAO review of the Public Trustee's stewardship of client funds that he should establish a pro-active strategy for divesting himself of trusts and estates work, particularly in terms of becoming a trustee of last resort and outsourcing his investment activities.
Where cases cannot otherwise be closed during that period, the OSPT proposes to invite expressions of interest from a private sector corporate trustee to take over and administer his cases in accordance with best market regulated practice. The OSPT will work to ensure that the interests of beneficiaries will be secured through this process. The proposals will be designed to deliver the administration of their trusts in the future in accordance with best practice standards. There will be full consultation with those affected, who will be able to put forward any alternative solution more appropriate in their particular case than that which the OSPT proposes. If agreement is reached with a private sector corporate trustee, or on an alternative solution in a particular case, the OSPT will retire from these cases in favour of the new trustee.
As announced in April 2000 in "Making Changes: The Future of the Public Trust Office", since the Official Solicitor was also appointed Public Trustee in 2001 he has only accepted any new trust and estates case where he has been satisfied that, in accordance with strict “last resort” acceptance criteria, a public sector trustee is required. In 2005/06, for example, only 13 cases were accepted by him as Official Solicitor, and one as Public Trustee. He is, however, currently responsible for administering about 1,750 trusts and estates, mainly taken on before the last resort criteria were applied.