Court Removes Trustees for Hostility to Beneficiaries
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Katie de Swarte
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Trustees removed because of hostility towards beneficiaries
When administrating a trust, the trustees manage the assets and therefore owe far-reaching fiduciary and other duties towards the beneficiaries. This assumes a relationship based on trust, confidence and loyalty between the trustees and beneficiaries.
However, that relationship can breakdown for many reasons and, in the case of a serious dispute, a trustee can be removed from the role. In a recent case following the death of a successful businessman, the court decided to remove two trustees who had shown comprehensive hostility towards two beneficiaries.
What’s the background?
In Nathan Smith v Ian Campbell [2025] EWHC 3011 (Ch), businessman Graham Cheslyn-Curtis died in 2018 aged 69, leaving an £8.2m estate. He was co-founder and was, at the date of death, sole owner of a business sourcing and supplying medical products to the veterinary sector. Its probate value was approximately £6.8m.
Graham left a will appointing four executors and trustees. He also left a detailed letter of wishes setting out his desire that his stepchildren, Nathan Smith and Leah-Jane Styring, would be groomed to take on the business. He set up a discretionary trust and appointed two friends (who were also executors of his will) to “tutor and mentor” Graham’s stepchildren. One of these was company chairman Paddy Campbell.
Unfortunately, Graham’s comprehensive vision for the business did not materialise. A dispute quickly arose between Nathan, Leah-Jane and the trustees around profit share payments made to them out of the trust; the relationship between them completely broke down; and the siblings were eventually removed as directors and dismissed from the company.
Nathan and Leah-Jane brought proceedings seeking the trustees’ removal on the basis of unfair prejudice on six grounds. They succeeded on the final ground – the breakdown in relations and hostility.
Removal of trustees
In such cases, the court must decide whether removing/replacing trustees is in the best interests of the beneficiaries (and of the trust as a whole). The mere presence of friction or hostility is not, in itself, sufficient to justify a trustee’s removal.
But if it is interfering with the proper administration of the trust, or having a negative impact on the welfare of the beneficiaries, a trustee’s removal may well be warranted.
Here, the siblings case was that the trustees – particularly Paddy – showed hostility towards them and orchestrated their removal as directors. However, Paddy alleged the siblings had a “sense of entitlement”, a “deep-rooted greed” and wanted their own way all the time. It was a bitter dispute that the judge said went “beyond mere friction and hostility”.
The judge allowed the siblings’ claim, concluding that Paddy had shown “outright hostility towards the claimants” – not just of their actions but their very characters as individuals. His “trenchant and deeply negative views” gave rise “to a reasonable concern” that he will find it very difficult to carry out his duties as a trustee with the required objectivity and impartiality.
The other trustee/mentor had also explicitly agreed with Paddy’s hostile remarks. Given their apparently shared negative views of the siblings, both trustees were removed as trustees. A professional trustee would be appointed alongside the remaining two trustees.
What does this mean?
The case illustrates the expectation that trustees must perform their duties fairly and without partiality. Where there is clear evidence of hostility between the trustees, or between the trustees and beneficiaries, such that it puts the administration of the trust at risk, the trustees face being removed.
Contact us
Osbornes has extensive experience advising trustees and beneficiaries in high-value and contentious trust disputes, including applications for the removal or replacement of trustees.
If you are facing difficulties with the administration of a trust or concerns about a trustee’s conduct, our specialist team can provide clear, strategic and practical advice to protect your position. Contact our expert contested probate solicitors by:
- completing our online enquiry form;
- or calling us on 020 7485 8811
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