Trust Dispute Solicitors
Trusts play an important role in estate planning, aiming to efficiently manage assets and provide for beneficiaries according to the grantor's terms. However, trust management can be a complex beast, and the diverse interests of beneficiaries can sometimes lead to disputes.
Trust disputes may stem from disagreements interpreting trust terms, managing assets, distributing funds, or trustee conduct.
If you find yourself in a dispute relating to a trust, either as a trustee or beneficiary, our network of wills, trust, and probate solicitors is on hand to provide expert legal help and advice quickly for affordable fixed fees.
To get started, contact our Legal Assessment Team today for a free case evaluation and quote for the services of an expert lawyer.
What is a trust dispute?
A trust dispute is any disagreement about the management of a trust. Typically, it involves a conflict between a trustee and a beneficiary of the trust. The dispute may revolve around trust terms or the trustee's handling of trust affairs.
Types of trust disputes
Because of the complexities of trusts, disputes can arise from the various issues related to the management and running of a trust and who is set to benefit.
Common types of trust disputes include:
Different interpretations of a trust deed
Beneficiaries fighting over what they’re owed
Mismanagement claims against trustees
Whether the trustee had the legal right to create the trust in the first place
Debate regarding the value of assets held in a trust
Friendly disputes
Friendly disputes happen when all parties acknowledge issues with the trust that require resolution. These typically involve trust structure or interpretation concerns. In such cases, the trust usually covers the trustee's legal expenses.
Trusts are complex and disputes can arise even with careful management aimed at avoiding such issues. In such instances, trust disputes may escalate to litigation and incur significant costs.
Can you claim against a trustee?
Claims can be made against a trustee when there are allegations that they haven't properly performed their duties.
Some common reasons for claiming against a trustee include the mismanagement of trust funds, like distributing them poorly, making bad investment decisions, or using trust funds for personal use.
Also, if a trustee shows bias by favoring one beneficiary over another or restricts beneficiary access unfairly, you may have grounds for a claim against them.
Or, if trustees withhold important information about the trust that should be disclosed, you have the right to make a claim.
How to resolve a trust dispute
Trust disputes are most commonly resolved out of court through negotiation, or alternative dispute resolution, typically mediation.
Resolving trust disputes usually requires the expert help of a solicitor with many years of experience acting for trustees and beneficiaries.
Various court applications can be pursued to address a trust dispute through legal channels, including:
Removing current trustees and appointing new ones.
Modifying trust terms or obtaining an order to sell trust property.
Reviewing trust accounts to investigate financial mismanagement.
Seeking court interpretation of ambiguous trust wording for distribution.
Confirming trustees' improper conduct, such as withholding information or misusing trust assets for personal gain.
Approving settlements for minors, unborn children, and individuals lacking mental capacity.
What are my rights as a trust beneficiary?
The rights of a trust beneficiary vary depending on the interest they have in the trust.
Trust beneficiary rights include the right to:
A copy of the trust instrument, or will
Deeds of appointment and retirement of trustees
Deeds of addition to the trust fund
Variations of the trust
Be informed about the trust and its administration
Trust accounting
Interrogate trust accounting
Be treated impartially by the trustee
Receive timely distributions from the trust
Apply to the court to have the trustee suspended or removed and surcharged
Can I remove a trustee?
If a trustee has breached their legal duty of care, you can act to remove or replace them, get information about the trust and its financial accounts, and recover money that has been taken out of a trust.
On what grounds can I remove a trustee?
You can remove a trustee for:
Violating the terms of the trust agreement
Mismanagement of trust assets
Fraud or misappropriation
Conflict of interest
Self-dealing (i.e.purchasing assets for trustees' benefit, or for less than market value)
Charging excessive fees
It is possible to pursue criminal charges against a trustee when they have been involved in theft or fraud.
Claims against a trustee can be made by a beneficiary, co-trustees and individuals with an interest in the estate, such as a creditor.