The Recognition of Trusts Act 1987 was enacted in the UK as an UK Act of Parliament to ensure trusts are consistently recognized across borders.

The Act implemented the Hague Trust Convention, which enables UK courts to handle trusts with international elements, improving clarity for cross-border asset management.

It provides a structured approach, allowing the UK to handle trusts more predictably in cross-border legal contexts.

The Act is divided into several sections: Legal analysts have critiqued the Act, noting its potential to facilitate tax avoidance by enabling easier transfer of funds to offshore tax havens.

This scrutiny centers on its role in potentially sheltering assets from tax liabilities.