Individual / Will Disputes & Contentious Probate
Trusts are meant to protect and provide for people, but they can become the source of bitter and complex disputes, whether over how a trustee is managing the trust, what the trust actually means, or whether it is valid at all. Our specialist trust dispute solicitors act for beneficiaries and trustees across Greater Manchester and the North West, and work to resolve matters as constructively and cost-effectively as possible.
Call us on 0161 930 5151 or email willdisputeteam@gorvins.com for a confidential conversation about a trust dispute.
A trust is a legal arrangement where one or more trustees hold assets for the benefit of others, the beneficiaries. A trust dispute is any disagreement about how that arrangement is set up, interpreted or run. Because trusts often involve significant assets, family relationships and long time periods, disputes can be both financially serious and emotionally charged.
Disputes fall broadly into two camps. Some are “friendly”, where everyone agrees there is a problem, often about how the trust should be interpreted, and simply needs the court’s guidance. Others are hostile, for example where a trustee’s conduct is challenged or the validity of the trust itself is in question.
We advise on the full range of trust disputes, including:
Trustees hold a position of trust and are subject to strict legal duties. They must act in the best interests of the beneficiaries, follow the terms of the trust, act even-handedly, invest prudently, keep proper accounts, and avoid conflicts of interest and self-dealing. Where a trustee breaches these duties and the trust suffers a loss, the trustee can be personally liable to make good that loss.
Trustees do have some protection. A trust deed may contain an exoneration clause, the court has power under section 61 of the Trustee Act 1925 to relieve a trustee who has acted honestly and reasonably, and beneficiaries who consented to a breach may be unable to complain of it later. There is also generally a six-year limitation period for breach of trust claims, though this does not apply to fraudulent breaches or to recovering trust property still held by the trustee. Confidence level: Very confident on the framework; the limitation position in particular is fact-sensitive.
If a trustee needs to be removed, the starting point is the trust document itself, which may give someone, such as a named person or the beneficiaries, the power to appoint and remove trustees. If not, a trustee may agree to retire, or can be replaced using the statutory powers in the Trustee Act 1925. Where cooperation fails, the court can remove and replace a trustee, and under section 41 of the Trustee Act 1925 can appoint new trustees where it is difficult to do so otherwise.
As with executors, the court’s focus is the proper administration of the trust and the interests of the beneficiaries as a whole. Serious misconduct will usually justify removal, but mere hostility between a trustee and a beneficiary may not be enough on its own. For estate administration specifically, see our page on problems with executors or trustees.
Beneficiaries are often kept in the dark, and a lack of transparency is one of the most common causes of trust disputes. Beneficiaries are generally entitled to know they are beneficiaries, to see the trust deed and trust accounts, and to be told how the trust is being administered. They are not automatically entitled to everything, for example the trustees’ confidential reasons for exercising a discretion, or a letter of wishes, may be protected. Where information is wrongly withheld, we can help you compel it.
In some circumstances a trust can be brought to an end or its terms changed. Where all the beneficiaries are adults with full capacity and agree, they may be able to end the trust and call for the assets under the principle in Saunders v Vautier. Where some beneficiaries are minors or unborn and cannot consent, the court can approve a variation on their behalf under the Variation of Trusts Act 1958, provided it is for their benefit. Ending or varying a trust can have significant tax consequences, so it needs careful advice.
The right remedy depends on what has gone wrong. It may include an order that a trustee makes good a loss, the setting aside of an improper transaction, the recovery of trust property from a trustee or a third party who received it, the removal and replacement of a trustee, a court ruling on the meaning of the trust, or the variation or termination of the trust. We will advise you on the most effective route for your situation.
Our Will Disputes and Contentious Probate team acts for beneficiaries, trustees and other parties in trust disputes. We can:
Where the dispute overlaps with a will, see our pages on contesting a will and claims against property or assets.
Gorvins is a Legal 500 recognised firm based in Stockport, acting for clients across Greater Manchester, the North West and nationally.
Call us on 0161 930 5151, email willdisputeteam@gorvins.com, or complete the enquiry form below and we will call you straight back.
Any disagreement about how a trust is set up, interpreted or administered. This includes breach of trust, trustee mismanagement, removing a trustee, interpretation disputes, validity challenges, and disputes over information or over ending or varying a trust.
Yes. A beneficiary can bring a claim where a trustee has breached the terms of the trust or their duties. Remedies include ordering the trustee to make good any loss, setting aside improper transactions, recovering trust property, and removing the trustee.
Check the trust document first, as it may give someone the power to remove trustees. Otherwise a trustee may retire, be replaced under the Trustee Act 1925, or be removed by the court. The court’s focus is the proper administration of the trust and the interests of the beneficiaries.
Generally you are entitled to know you are a beneficiary, to see the trust deed and accounts, and to be told how the trust is administered. Some material, such as trustees’ confidential reasons for a decision or a letter of wishes, may be protected.
Sometimes. If all beneficiaries are adults with capacity and agree, they may end the trust under the rule in Saunders v Vautier. Where beneficiaries are minors or unborn, the court can approve a variation for their benefit under the Variation of Trusts Act 1958. There may be tax consequences.
There is generally a six-year limitation period for breach of trust claims, but this does not apply to fraudulent breaches or to recovering trust property still held by the trustee. Limitation in trust cases is complex, so take advice promptly.
Wills, Trust & Probate
