It is provided by Section 2 of the Act that no settlement created after the commencement of the Act shall be a strict settlement, that is to say, a settlement to which the Settled Land Act 1925 applies. The provisions of this Schedule are intended to be consequential on that section.

Section 27 of the Settled Land Act 1925 (which is repealed by Schedule 4 of this Act) provided that if land was conveyed to one or more infants it should operate as an agreement for valuable consideration to execute a settlement in favour of that infant and in the meantime to hold the land on trust for the infant. Since it is no longer posible to create a SLA settlement this paragraph provides that the land shall be held on trust for the infant. Once the beneficiary has attained full age, or, if there are several beneficiaries, once they have all attained that age, the trustee can convey the land to them under Section 6 of the Act. (See the commentary to that section.)

Sub-section (2) deals with the case where land is conveyed to a minor and an adult. Broadly speaking it replicates the provisions of Section 19(2) of the Law of Property Act 1925 (which section is repealed by Schedule 4).

Sub-section (3) contains transitional provisions dealing with a conveyance to a minor or minors which took place before the commencement of the Act. The agreement under Section 27 ceases on the commencement of the Act, and the conveyance takes effect from such commencement as a declaration that the land is held on trust for the minor or minors.