Contentious trusts

You may have a claim if you are a beneficiary, a person with an interest in the trust, or someone affected by how the trust is being administered. Common situations include:

• Trustees acting beyond their powers or failing to act.
• Mismanagement or misappropriation of trust assets.
• Beneficiaries being unfairly treated or excluded.
• Beneficiaries lacking information about a trust.

Evidence is vital in trust disputes. Useful documents include:

• The trust deed and any deeds of appointment and retirement of trustees.
• Financial records, bank statements, or investment documents.
• Correspondence between trustees and beneficiaries.
• Evidence of mismanagement, negligence, or breaches of duty.

Documentary evidence is usually central to proving your case, so gathering as much information as possible is important.

Trustees must act in the best interests of all beneficiaries and follow the terms of the trust. If a trustee:

• Mismanages assets,
• Fails to provide accounts or updates,
• Acts for personal benefit, or
• Ignores beneficiary rights,

you may be able to bring a claim to have their decisions reviewed or overturned.

In some circumstances, beneficiaries can apply to the Court to remove or replace a trustee. Grounds may include:

• Breach of trust,
• Mismanagement of trust assets,
• Conflicts of interest,
• Persistent failure to act in accordance with the trust deed,
• Trustee losing capacity.

Court action is usually a last resort. Many disputes can be resolved through negotiation or mediation, which is faster and less costly. Courts become involved if an agreement cannot be reached or if urgent intervention is needed.

It depends on the complexity and cooperation of the parties. Mediation or negotiation can conclude in a few months, whereas court proceedings may take a year or longer.

Costs vary depending on the complexity, number of parties, and whether the dispute goes to court. We provide clear cost estimates after an initial consultation and offer funding solutions for clients with strong claims.

It is the duty of a trustee to:

• Act in the best interests of all beneficiaries.
• Follow the terms of the trust deed.
• Keep trust assets separate from their own.
• Avoid conflicts of interest.
• Provide regular accounts and updates to beneficiaries.
• Not act for personal gain or mismanage assets.

Beneficiaries are generally entitled to:

• Copies of the trust deed.
• Updates on any change of trustees.
• Accounts showing assets, liabilities, and expenses.

They do not automatically have access to all documents, but they can request information on administration and management.