Trust disputes—reliefs and exemptions for breach of trust

Copyright © 2025 LexisNexis

Published by a LexisNexis Private Client expert

Practice notes

Trust disputes—reliefs and exemptions for breach of trust

Copyright © 2025 LexisNexis

Published by a LexisNexis Private Client expert

Practice notes

imgtext

It is difficult to determine in which way to advise a trustee accused of a breach of trust, as the dividing line between a full defence and relying on the court excusing the trustee's actions for a palpable breach is thin. There are a number of avenues the practitioner can explore.

Acting honestly and reasonably—section 61 of Trustee Act 1925

This is very useful for the lay trustee and while it offers hope to the professional trustee, it will be more difficult to persuade the court to exercise its discretion in their favour. As has been said:

'… a paid trustee is expected to exercise a higher standard of diligence and knowledge than an unpaid trustee.'

The section provides:

'If it appears to the court that a trustee, whether appointed by the court or otherwise, is or may be personally liable for any breach of trust, whether the transaction alleged to be a breach of trust occurred before or after the commencement of this Act, but has acted honestly and reasonably, and ought fairly

Powered by Lexis+^®

Jurisdiction(s):

United Kingdom

Key definition:

Disputes definition

What does Disputes mean?

There is a tPR code of practice on dispute management and regulation.

Popular documents

What is the procedure to remove a caveat?

What is the procedure to remove a caveat?A caveat is effective for six months. It can be extended on an ongoing basis for six months at a time. If the caveat is not renewed it will expire and any interested party is free to extract a grant.Withdrawal of caveatA caveat can be withdrawn at any time

Where an executor of an estate is not in agreement with a co-executor’s decision but reluctantly agrees

Where an executor of an estate is not in agreement with a co-executor’s decision but reluctantly agrees to proceed with it, will the reluctant executor still be jointly and severally liable for the decision? Is there anything they can do to protect their interests?Joint and several liability of

Intermeddling in an estate

Intermeddling in an estateWhat is intermeddling?An individual who performs certain duties which a personal representative (PR) would perform to administer a deceased’s estate intermeddles in the estate. By performing these duties, the individual holds themselves out to be a PR and is deemed to have

Trust disputes—breach of trust

Trust disputes—breach of trustIt is a fact of life that beneficiaries and trustees fall out. Often this is due to misunderstandings but occasionally beneficiaries may consider proceedings either to restore a trust fund or obtain compensation on the basis that the trustees have exceeded their