We help with trust disputes including the removal of trustees, and claiming money from a trust.
Our trust dispute solicitors help many people and families who are facing potential trust disputes. These types of claims can be difficult especially with family involved, and we understand the need for sensitive, appropriate legal guidance.
A trust involves the legal transfer of an individual’s assets such as property, cash, shares etc to another person or persons (called trustees). The trustees look after those assets and manage them for the benefit of other people (called beneficiaries). Once transferred, the trustees become the legal owners of those assets and the person who transferred them no longer owns them. The assets no longer form part of their estate and unless they are themselves a named trustee or beneficiary of they will have no control of what happens to those assets or any interest in those assets. Trusts are often recommended as a way for an individually to safeguard their assets either during their lifetime or after their death, if they do not want those assets to pass outright to family members.
The details of this arrangement is normally set out in a document called a trust deed. This trust deed should set out the names of the trustees and the intended beneficiaries and also state what powers the trustees have in relation to the assets. Sometimes the “trust deed” may not be a separate document at all and a trust could have been created through a person’s will.
Often the trust deed is accompanied by a statement prepared by the person who transferred the assets setting out their wishes as to what they would like to happen to them e.g. if they want one beneficiary to receive more than other one. This statement is called a letter of wishes. However, the letter of wishes is just a guide for the trustees. It is not binding upon them and the trustees are free to ignore it and impose their own views. That can often lead to conflict as this gives the trustees a lot of control.
Even with the most careful of planning with trustees being chosen carefully and clear guidance given, trust disputes can still arise. Trustees have a great deal of power and discretion as to what is to happen to the assets which can inevitable lead to disagreements. Many trusts that are set up can involve different family members, either as trustees and/or as beneficiaries, each with different and competing views as to what should happen. This leads to conflicts and trust disputes.
Trust disputes tend to fall into two main categories:
Whilst the person who set up the trust may have taken legal advice at the time, if they are no longer involved in the trust (e.g. they have passed away) then that advice is unlikely to assist anyone who is named as a trustee or beneficiary if a problem arises. If you have concerns about a trust either as a trustee or beneficiary then you should take legal advice as soon as possible. Trustees have a great deal of legal obligations set out in so it’s important that they take action quickly to avoid being personally responsible for any losses causes to the trust.
A trustee must at all times act in the best interests of the trust. They must act with honesty, integrity and in good faith. They must act in accordance with the terms of the trust deed and to do otherwise which amount to a breach of trust. E.g. a trustee is not allowed to pay money out to anyone who is not named as a beneficiary of the trust, even if they think they are doing the right thing. Trustees must also ensure that there is no conflict between their interests and those of the trust e.g. selling trust assets to themselves at a price much lower than the market value. They should also act impartially between the beneficiaries and not prefer one over the other, unless the trust deed specially permits it.
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There is a time limit for bringing Contentious Probate claims. They normally have to be issued at court within 6 months from the date of the grant of probate. You can search online to see whether or not a grant has been issued.
Depending on how complex the deceased’s estate is, a grant of probate could be issued only a few weeks after the deceased’s death so this may not leave a lot of time for someone to make a claim. Therefore you should act quickly and get in touch with legal professionals.
It is possible to bring a claim after the 6 months has expired, but you will need permission from the court to do so. The court looks at the full range of factors, such as the reasons for the delay in making the claim, and what prejudice would be suffered to the estate and any other beneficiary. There is no guarantee that the court would grant permission even if the delay is only a few weeks. Similarly, just because a claim may be brought many years after the grant, it doesn’t mean that permission would be refused.
It will be up to the court to decide, and again depends on the individual facts of the case.
