Trust disputes

Trust disputes guidance:

The traditional approach to trust disputes has been to resort to litigation rather than using the less contentious methods of alternative dispute resolution (ADR). At the...

Practice Note

When trustees are engaged in trust litigation, issues often arise as to how their litigation costs are to be funded. A Beddoe application is the best way of ensuring that...

Practice Note

Claims for knowing receipt (sometimes also known as ‘unconscionable receipt’) and for dishonest assistance are sometimes referred to as ‘accessory liability’ in that they...

Practice Note

What is the nature of the constructive trust? There are two categories of 'constructive trustee' as described by Lord Sumption in Williams: • the first category comprises...

Practice Note

In Public Trustee v Cooper, the English High Court recognised that it had the jurisdiction to bless the ‘momentous decision’ of a trustee, thus protecting the decision...

Practice Note

Rectification is a creature of equity and in consequence, entirely discretionary. When considering rectification, the practitioner should bear in mind that it is not the...

Practice Note

Breach of trust Beneficiaries may consider proceedings either to restore a trust fund or obtain compensation on the basis that the trustees have exceeded their authority...

Practice Note

It is not uncommon for trustees to be faced with difficulties in the execution of their trusts. They are entitled to ask the court for help in such cases. They are also...

Practice Note

In general the trust instrument will provide for the appointment of replacement trustees but this is not always the case. In some circumstances the court may have to...

Practice Note

In some circumstances a beneficiary will want to recover a specific asset. Tracing as a remedy will be the preferred option as the claimant seeks to establish a...

Practice Note

A distinction should be drawn between disclosure by the trustees under trust law, due to the rights of beneficiaries to receive information and ‘non-party’ disclosure by...

Practice Note

It 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...

Practice Note

This Practice Note is concerned with those breaches of duty by a trustee which consist solely of negligent acts or omissions, and which do not involve either the...

Practice Note

The courts of equity have a well-recognised jurisdiction to grant relief against the consequences of mistakes and ambiguities in a variety of contexts relating to trusts....

Practice Note

Trustees involved in litigation will be keen to ensure their costs and any costs awarded against them are met from the trust fund. Under section 31(1) of the Trustee Act...

Practice Note

Trust litigation has been classified as being of three types: • a dispute as to the trusts on which trustees hold the subject matter of the settlement • a dispute with...

Practice Note

The most simple defence that a trustee can raise to a claim for a breach of trust is that the claim itself has no merit, eg that there had been no breach or that there...

Practice Note

There is no possibility of claiming a breach of trust or asking for an administration order in respect of a trust if it cannot be proved that one actually exists. On the...

Practice Note

Examples of claims against trustees for breach of investment duties are: • delay—where a trustee takes too long to invest trust assets • making bad investment...

Practice Note

It is very 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...

Practice Note

Remedies come in a number of shapes and sizes but can be roughly divided into those that are personal and those that are proprietary. The difference between the two can...

Practice Note

The issue of sham is most likely to be raised by the settlor's creditors or former spouse if the settlor is involved in matrimonial proceedings, who will seek to argue...

Practice Note

This Practice Note covers the purpose and procedure of section 41 of the Trustee Act 1925 (TA 1925), which confers jurisdiction on the court to appoint or replace...

Practice Note

When a trustee makes a mistake, it is important to remember that there are a few remedies available: rectification, the doctrine of mistake and the so-called rule in...

Practice Note
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