The intention behind this section is to extend the provisions of Section 26(3) of the Law of Property Act 1925 (which is repealed by this Act). The trustees must consult with the beneficiaries "in the exercise of any function relating to the land subject to the trust". This presumably means, for example, that the trustees must consult the beneficiaries concerned before taking any decision whatsoever relating to the land.

The trustees do not, however, have to consult all the beneficiaries of the settlement, but only those of full age and entitled to a beneficial interest in possession in the land (as to which see Section 9(1) above).

Subsection (2)(a) provides that if the trust is created by "a disposition" made after the commencement of the Act there is no such need to consult in so far as provision to that effect is made by the disposition. Such a provision will no doubt become standard in most express trusts. The expression disposition is capable of including an oral declaration of trust -- Grey v Inland Revenue Commissioners.

It is also provided that the trustees need not consult under this section in relation to a trust which is created or arises under a Will made before the commencement of the Act (whether the testator died before or after such commencement).

If the trust was created inter vivos before such commencement then there is no need to consult under the Section unless the settlor, or surviving settlors executes a deed declaring that they must do so -- sub-section (3) -- and the same rule applies if the trust was made after the commencement of the Act "by reference" to a trust made before such commencement: this might, for example, happen if a settlor conveyed further land to trustees to hold by reference to the trusts of an earlier settlement made by him.

The Court has power to dispense with the need to consult -- section 14.