Trust Dispute Solicitors

If you are involved in a trust dispute, either as a trustee or as a beneficiary, JMW Solicitors can provide you with expert legal advice and support. Our knowledge of trust disputes will enable you to find an efficient, fair and satisfactory resolution to your case, whether your concerns relate to financial provision, trustee misconduct, beneficiaries or other parties involved.

JMW's expert trust dispute solicitors will investigate all aspects of any disagreements that arise over the management of a trust, in order to find the most effective way of resolving the matter. Wherever possible, we will work to find a mutually satisfactory outcome for all involved to bring your dispute to an amicable conclusion.

We understand how complex the law surrounding trust management and trust disputes can seem, and we will make the process as straightforward as possible for you to help you move forward with your life. To seek expert legal advice on trust disputes, get in touch with our specialist trust dispute solicitors at JMW by calling 0345 872 6666, or fill in our online enquiry form to request a call back.

How JMW Can Help

JMW's trust dispute solicitors can help you reach a favourable outcome in any type of trust dispute. With wide-ranging experience in wills and probate matters, we can act on behalf of trustees and beneficiaries to bring a dispute to a swift and fair conclusion. We deal with trusts of all shapes and sizes, including those that incorporate international assets or complex wealth management structures.

• Our experts regularly advise on the following types of cases:
• Challenges to the validity of trusts
• Variation of trusts
• Applications for directions in relation to the administration of a trust
• Applications for declarations as to the construction of a trust
• Applications for the removal of trustees
• Breach of trustee duty allegations
• Challenges to decisions of trustees
• Challenges from a dissatisfied beneficiary
• Professional negligence claims against trustees regarding:
• Estate administration
• Breach of trustee statutory duties
• Unauthorised or unwise investments

Our aim will always be to achieve an amicable solution where possible, and we will explore alternative dispute resolution methods like mediation as a faster and more cost-effective option than court action, where possible.

As members of the Society of Trusts and Estate Practitioners (STEP), JMW's specialist team has been recognised for the quality of its service and its extensive experience in resolving issues related to trusts, assets and estates.

Meet Our Trust Dispute Solicitors

The specialist contentious probate solicitors at JMW can help you to resolve a range of trust and probate disputes, and will aim to reach informal conclusions where possible. Our experience in court proceedings and track record of success means that we can help beneficiaries, trustees, and others to reach the best possible outcome in these cases.

Our Trust Disputes Accreditations

JMW's trust disputes solicitors have been awarded professional accreditation from organisations and associations including:

• The Legal 500 said that JMW has a “great team. Good legal knowledge and commercial approach to litigation. The team moves very quickly, and is very calm and knowledgeable”.
• Chambers and Partners High Net Worth Guide, in which JMW’s wills disputes team is described by an interviewee as a “professional, modern firm delivering expert advice”. Alison Parry is described as “one of the best litigators in Manchester” and her “strengths are her obvious expertise, her capability and her empathy”.
• The Association of Contentious Trusts and Probate Specialists (ACTAPS) - Membership to this association requires solicitors’ firms to meet certain criteria based on their performance in this line of work.
• Society of Trusts and Estate Practitioners (STEP), where our membership demonstrates our commitment to high professional standards and continued professional development, building the confidence, respect and trust of our clients.
• Special Interest Group for Contentious Trusts and Estates - Members of this group are focused on international trust and estate law while promoting best practice in the handling of contentious trust and estate disputes and trustee litigation.

Our work with these organisations recognises the practical advice we offer, and our thorough understanding of your legal obligations and needs as a trustee or beneficiary. This puts us in a strong position to resolve a wide range of disputes, including even the most complex cases.

What Is a Trust Dispute?

Many people set up trusts when passing on a legacy to their loved ones. A trust allows you to set aside a certain amount of your wealth or assets, which will no longer form part of your estate. Funds and assets will be managed by a trustee or trustees and allocated to beneficiaries under terms specified in a trust document. This can protect wealth from Inheritance Tax and other obligations, and allow you to structure how your beneficiaries inherit from your estate.

A trust dispute can arise if disagreements arise over the administration of the trust, if beneficiaries dispute how trustees are managing the underlying assets, if they dispute what they should get or when or if trustees have concerns with each other. It is often possible to resolve a trust dispute informally, without the need for court action. However, because trustees have legal responsibilities, it is often possible to take legal steps to resolve the matter, if necessary.

What Are the Most Common Types of Trust Disputes?

There are many reasons why trust and probate disputes may arise, ranging from the actions of a trustee, the actions of certain beneficiaries or the rules of the trust. Examples of some of the most common types of disputes include:

• A trustee is accused of negligence, fraud or breaching the rules of the trust, or overlooking negligence committed by another trustee
• A trustee fails to administer the trust effectively or efficiently
• A beneficiary seeks to remove a trustee
• The trust document itself is found to contain mistakes or ambiguities, or does not accurately reflect the wishes of the person who set it up
• The person who set up the trust was misled, lacked mental capacity or was subject to undue influence
• Beneficiaries of the trust feel they have not been paid what they are due from the trust
• A trustee is found to have used funds from the trust for their own benefit

If a trust dispute arises, it can have serious consequences for all involved. It may stop beneficiaries from claiming funds that are rightfully theirs, or put trustees at risk of legal action.

As such, if you are involved in such a case, it is important to seek out expert advice on trust disputes as soon as possible in order to find the best way of achieving a smooth resolution. JMW can offer compassionate guidance on resolving a dispute amicably, and provide robust representation if the court is involved.

Who Can Bring a Claim in Relation to a Trust Dispute?

A trust dispute claim can be brought by anyone who has a legal interest in the trust or is affected by how it is managed.

• Beneficiaries are the most common claimants. Anyone named in the trust (or who believes they should have been) can bring a claim.
• Potential beneficiaries can claim, including people who expected to benefit but were excluded, or those who have a contingent interest (such as future or conditional beneficiaries).
• Trustees themselves can bring claims against co-trustees, to seek court guidance or to defend the trust against challenges.
• The person who created the trust (the settlor) usually cannot interfere once the trust is established, but may bring a claim if there’s a need to correct or rescind the trust.
• Creditors can sometimes bring claims if they believe that assets were improperly placed into a trust to avoid debts, which may give them a legal right to pursue trust assets.
• Personal representatives such as executors or administrators of an estate may bring a claim if a deceased person’s assets were wrongly transferred into or out of a trust.

If you have concerns and want more information about whether or not you are in a position to make a claim or take legal action in connection with a trust dispute, speak to the team at JMW for specific guidance tailored to your circumstances.

How Are Trust Disputes Resolved?

Trust disputes can sometimes be resolved through informal resolution or alternative dispute methods, and JMW's approach will always start with this in mind. Where appropriate, we might recommend direct discussions between beneficiaries and trustees, or making a request for information regarding trust accounts or decisions. Sometimes, this transparency can resolve an issue before it escalates.

Mediation is one of the most widely used methods of alternative dispute resolution that often resolves matters quickly and cost-effectively. It involves an independent mediator helping both sides to negotiate and reach a resolution that works for all parties. You can also work with a solicitor to protect your interests and uphold your rights during this process. The court often expects parties to try mediation first, and most trust disputes can be settled at this stage with the right guidance and legal support.

If a resolution isn’t possible, the dispute goes to court. Typical reasons why the High Court might need to get involved include:

• Breaches of trust (e.g. misuse of assets)
• Removal of trustees
• Disputes over interpretation of the trust document
• Challenges to validity of the trust (for example due to fraud, undue influence, lack of capacity)

The court can offer several types of resolution, from removing or replacing trustees to freezing and recovering assets, or ordering trustees to pay compensation and cover financial losses.

Even after proceedings start, parties often settle through negotiation between their solicitors before any court date arrives. Any informal conclusion can be made into a legally binding agreement to ensure it can be enforced later, if necessary.

Q

What are the responsibilities of a trustee?

A

In agreeing to become a trustee, an individual has a certain number of legal responsibilities to the trust and its beneficiaries. These include:

• Managing and dealing with the trust in line with the requirements of the will or trust deed, while acting with reasonable care and competence
• Keeping the trust property and assets safe and secure
• Providing fair and impartial treatment to all beneficiariesMaintaining clear, transparent and sufficient records to show that the trust is being managed properly
• Agreeing not to misuse or appropriate the trust funds for their own benefit

If any of these legal duties have been breached or gone unfulfilled, a trust dispute can be initiated against them, and this could result in them facing civil or criminal charges.

Q

Can a trustee be removed from a trust?

A

There are a number of circumstances in which a trustee can be removed from a trust and replaced. The following are considered automatic grounds for a trustee to be removed:

• The trustee dies
• The trustee is unfit, incapable or ineligible to act on the trust’s behalf
• The trustee formally requests to be discharged from their duties
• The trustee remains outside the UK for more than 12 months

The courts also have the power to remove a trustee if serious misconduct can be proven, or if other circumstances arise that make their position untenable. These might include:

• The trustee refuses to take necessary actions on behalf of the trust
• The trustee has been shown to have acted against the best interests of the trust and its beneficiaries
• The trustee has failed to act impartially by favouring one of the beneficiaries over another
• The relationship between trustees breaks down, meaning they are no longer able to manage the trust and make collective decisions

If you believe a trustee should be removed, speak to JMW for legal advice on the process involved and the circumstances under which you can take legal action against a trustee.