Trust Disputes
Trust Disputes Solicitors
Trusts have been used for generations to avoid or solve problems in two main areas: taxation and family matters. Osbornes Law offer specialist trust advice to high net worth families. Our expert trust lawyers have a wealth of experience in assisting those with significant international assets.
“I have found her to be extremely efficient, She is very fair in her dealings with all parties and she navigates the conflicting demands imposed on her by opposing parties in a supremely fair fashion.”
“A well-established contentious trusts and probate team.”
A guide to resolving trust disputes
A trust is a legal arrangement where one party, known as the settlor, gives another party, the trustee, the ability to manage assets for the benefit of a third party, the beneficiary. Trusts are common estate planning tools, used to manage the way that wealth is passed from generation to generation while minimising tax liabilities.
However, with several parties in play, trusts are not immune to disputes. Trust disputes come in many forms, but they generally fall into two main categories:
- Disputes regarding the terms, validity and legal interpretation of a trust, or
- Disputes over how the trust is administered.
Within those two broad categories, there is a wide variety of disputes that can arise. Our specialist trust lawyers can help you handle trust disputes whether you are a beneficiary or a trustee. Our balanced approach combines pragmatism with sensitivity to ensure the best possible outcomes for all parties involved.
‘Interpretation’ trust disputes
Disputes can often arise due to misunderstandings about what the trust document actually means. Beneficiaries and trustees may have differing opinions about the purpose or intent of a particular clause, especially if the trust language is unclear.
These types of disputes are often not hostile. The trustees and beneficiaries may collectively agree that the trust document needs to be clarified or rectified for it to be administered appropriately, but they disagree on what the trust should say. This may happen if:
- The document uses vague or confusing language, making it difficult for trustees to follow its instructions.
- Beneficiaries and trustees have different views on what the trust was intended to achieve.
- The settlor had different wishes to what the trust documents say.
- There are questions around the mental capacity of the settlor when creating the trust, or if there was any undue influence involved.
A typical interpretation dispute is usually settled by the trustees making an application to the Court. The Court will try to identify the settlor’s true intention, and can order the ambiguity to be rectified for the benefit of the whole trust.
‘Administration’ trust disputes between beneficiaries and trustees
Administration disputes are hostile in nature. They are usually brought by beneficiaries who are unhappy with the way the trustees are handling their responsibilities.
Trustees have several duties set out in law. If a beneficiary believes that a trustee has not fulfilled their legal responsibilities, or has fallen short of the standard expected of them, they may have a claim for breach of trust by the trustees. This could be:
- Not investing trust funds wisely
- Mismanaging trust funds or using them for personal gain
- Not disclosing trust documents and financial records
- Favouring one beneficiary over another
- Not giving beneficiaries their rightful distributions
- Letting personal interests interfere with their role
- A general lack of competence in handling the trust
If a breach of trust occurs, the beneficiary can make an application to the Court. The Court has the power to compel specific actions, such as:
- Requiring the trustees to produce information,
- Providing direction on how the trustees should correctly manage the trust, or
- In extreme cases, removing the trustee from their role and appointing a replacement.
It is not always a beneficiary making such claims. Trustees themselves can bring a claim against co- trustees if they believe they are not fulfilling their obligations or responsibilities.
Other types of trust dispute
Trusts come in all shapes and sizes, and it is impossible to list every type of dispute that could arise. Some other types of trust disputes our team deals with include:
- Claims by third parties against the trust, for example, claims by a tenant of trust property.
- Changes in beneficiary circumstances that trigger a dispute, such as marriage or mental incapacity.
- Disputes between co-trustees about how to handle the trust.
- Disputes between beneficiaries about their respective interests in the trust.
- Claims that the trust is a sham to try and disguise real legal ownership of the assets. For example, a spouse in a divorce may claim that the trust was set up as a way for their partner to hide matrimonial assets.
How do you resolve a trust dispute?
The specific approach will depend on the type of dispute and what type of remedy the parties are seeking. However, we will usually seek to resolve a trust dispute out of Court as it can be a faster, cheaper and less stressful way to reach an agreement, with Court as a last resort. Possible solutions include:
- Asking the trustee to step down and allow a more qualified individual, like a lawyer or accountant, to take their place.
- Asking the trustee to seek professional advice to better understand their responsibilities and receive support in fulfilling their role.
- Proposing a meeting between the trustees, beneficiaries and their respective legal representatives to discuss concerns and explore potential solutions.
- Appointing a mediator to work with all parties to reduce tensions and find an agreeable resolution.
- Seeking Court directions on how to resolve specific issues and ensure the trustees meet their obligations moving forward.
- Requesting the Court to hold a trustee personally accountable for any financial losses they caused, requiring them to compensate the trust and beneficiaries.
- Petitioning the Court to remove the trustee and appoint a suitable replacement.
The best option for you will depend on the circumstances, including whether (if you are a beneficiary) you have the support of the other beneficiaries, and (if you are a trustee) the position the trustees elect to take as a group.
Our contentious trusts team at Osbornes can assess your situation and guide you toward the most suitable resolution strategy. We will explain from the beginning how long the process might take and what result you can likely expect.
Can I contest a trust with a ‘no contest’ clause?
A no-contest clause is a clause in a will or trust that aims to stop beneficiaries from challenging the document’s validity. If a beneficiary challenges the will or trust and loses, they could lose their inheritance or any benefits they were meant to receive.
They do not forfeit anything if their challenge is successful.
If you are affected by a no contest clause, it is important to seek legal advice. The law surrounding no-contest clauses is complex, and we can provide guidance on whether it is worth pursuing a dispute despite the presence of a no-contest clause.
Are the rules different for offshore trust disputes?
Provided there is some link with England or Wales — because the beneficiaries are based here, for example, or the trust documents designate English law to apply — then our team of experts can usually help clients with offshore trust disputes. The process and remedies may be different, however, so it’s important to get advice from our specialist solicitors.
Contact us for help with your trust dispute
Whether you are a beneficiary seeking help with a trust dispute, or a trustee seeking to protect yourself from liability, we can help. To speak to a specialist trusts lawyer about a trust dispute:
- Call 020 7485 8811, or
- Fill in the contact form below.
Speak to a trust dispute lawyer today
Call us 020 7485 8811
Email us Send us an email and we’ll get back to you
We'd like to thank all of you for your professionalism in helping us deal with everything for the past 17 months. Even though our choice of law firm at the beginning was random, we're glad we came to you. We're very grateful that you're on our side and fighting for what's rightfully belongs to us! We couldn't have had a better lawyer representing us and we appreciate you more than you can imagine.
A full service team which punches above its weight, dealing with a range of UK and international clients.
Very high standards of client care, efficient and very good collaboratively when working for clients in common with our firm.
Jenny Walsh is a full member of STEP and a key figure who specialises in non-contentious private client matters, often with a cross-border dimension.
The nimble team at Osbornes acts for trustees, executors, personal representatives, and other high-net-worth individuals.
Excellent team doing high-end work. Would always consider for referral and conflict work.
Jan Atkinson heads up the team and is a respected senior lawyer.
A well-established contentious trusts and probate team.
An ambitious team who work hard for their clients.
The calm and experienced Jan Atkinson is at the helm of the team.
Osbornes acts for a wide range of high-net-worth individuals, families, and trust companies in complex estate and trust litigation.
Osbornes has a practice which is big enough to take on substantial cases and small enough to retain a personal touch.
With a deep sense of gratitude, I want to thank you all for your diligent and comprehensive contributions and assistance in my legal travails.
I am sure you know how stressful legal proceedings can be for everyday laypersons like myself. Thankfully, you have been a bastion of support and reassurance during these trying months, and I struggle to find the right words to express my sincere gratitude.
Thank you from the bottom of my heart.
A private client team offering a range of services to assist with private client matters including trust and probate services. A friendly approach with a keen eye for detail.
I have been a client of this firm for a number of years and been impressed by particular individuals, the care and thoughtfulness with which they have worked.
An efficient firm which provides an excellent service at highly competitive charging rates.
The team receives a steady flow of instructions from high-net-worth individuals and families on an array of tax planning, wealth preservation, estate and succession planning issues
I think this firm has excellent strength and depth in this area, for both contentious and non-contentious work, and they can hold their own against any other firm.
I have found them to be incredibly knowledgeable and pragmatic in settling claims for their clients.
The contested estates team is strong with talented young solicitors doing good quality work
The nimble team acts for a broad range of high-net-worth individuals and families on a variety of complex estate and trust litigation.
Osbornes has a ‘strong private client department’ and ‘the firm seems to be going from strength to strength’.
Thank you for managing my case, following a complete fiasco before I contacted Osbornes Law. I know that the work involved was rather complicated, possibly frustrating and often time consuming. I was impressed with your current knowledge of the case when we had the first meeting at your office. I regard a face-to-face meeting as imperative in developing positive relationships. Members of your team, such as Alex and Ella were impressive too, with their efficient, friendly manner of working.
I am grateful for your patience, advice and excellent support at a difficult time. Hopefully it won't be necessary to contact you again regarding this matter! I will definitely use Osbornes Law in the future."Commitment to the cause, willingness to go the extra mile and complete command of the area mean they always give the right advice and do the best job possible."
"They are completely committed to doing the absolute best they can for every single client. They are bright, knowledgeable and innovative."
"Most of the team conduct both contentious and non-contentious work, giving them a solid grounding in estate and trust managing principles including tax that is valuable in conducting litigation."
"This team perhaps does not have the reputation in this area it ought to have. It quietly handles some very big, high profile disputes. It has an expert team to do so and provides sensible pragmatic advice to its clients."
"The department handles complex and high-value litigation on behalf of individuals and trust companies and many of its cases have a cross-border dimension."
"The agile team at Osbornes acts for a wide range of high-net-worth individuals and families in complex estate and trust litigation, advising on a wide array of contentious trust and estate matters."
"I wish to thank you for your advice, efficiency and professionalism throughout which has been greatly appreciated."
"I am proud to be a private client of Osbornes Solicitors LLP, a client of many years. I appreciate the swift and efficient work of the Private Client Department Team."
"Jan Atkinson, with her steely, steady, calming presence, instils confidence in the most highly-strung of us clients. With her masterful knowledge of the law, old and new, and its application, Jan can navigate through the most complex of cases to a successful end."
"I find Osbornes’ client-friendly approach welcoming and refreshing"
"A medium-sized London firm dealing with big litigation and doing it extremely well because of a depth of expertise and experience."
My family had the pleasure of Jan Atkinson working with us on the will and probate issues of [my mother's] estate in Camden and Ireland after she passed on last year. Jan and her assistant(s) offered us a fantastic service at a sad time.
"Jan Atkinson stands out for her wide-ranging knowledge and experience of estates; whatever problem you throw at her, she has seen it all before and is able to find a creative and sustainable solution. She has exceptional commitment to her clients and explores every avenue to find the best solution for them"
The team is very caring, experienced and detailed and was clear about the next steps and offered very helpful advice and suggestions
Jan Atkinson has extensive experience in private client matters, which underpins her excellent skills in the contentious probate area. Plus she is strong on international matters
A small but formidable team, punching above its weight. Jan Atkinson is a seasoned pro. Approachable but no push-over
"They are an outstanding firm to work with. They are consistently impressive in their work."
"Elspeth Neilson is very reliable and practical."
"The team frequently deals with cross-border estates for high–net-worth individuals."
"The team were extremely professional in putting my needs first. There was a joined-up approach to catering for the client, and all lawyers involved were briefed and constructive."
The situation was handled by your extremely competent, efficient hands - I would not hesitate to recommend Osbornes to others.
"Service prompt and effective. I have absolute confidence in Maggie."
I am happy with the service that I got and would recommend you to other potential clients.
I found Osbornes always very helpful and efficient.
We are very pleased with the services of Osbornes. Highly professional and through with close attention to detail.
I would highly recommend Jan Atkinson in any probate matter and Osbornes Solicitors in any other legal matters.
Jan Atkinson is a very proficient lady whom I would highly recommend to anyone involved in probates.
Thanks for all your work and explaining everything so clearly. For any legal matters in the future I would not hesitate in instructing Osbornes.
We have found your service to date as the most informative we have come across.
Osbornes Solicitors always responded promptly to any request for information I had.
“Geoffrey’s affairs were dealt with just the right combination of friendliness and professionalism, which really helped.”
Jan Atkinson is confident with a straightforward approach. Her practice covers both contentious and non-contentious matters, including wealth planning and estate administration.
I would like to thank everyone in my case for the excellent job!
Related Content
Accreditations
News and Insights From our Lawyers for TrustsVIEW ALL
25.4.2024A Guide to Will Trusts
What is a trust in a will ? Setting up a trust in your will can protect assets for your loved...
Read more- 25.4.2024
A Guide to Asset Protection Trusts
One good reason to place your assets into a trust is to protect family wealth without fearing for its future....
Read more - 23.4.2024
A Guide to Life Interest Trusts
In today’s complex families, protecting assets for your children while ensuring that a surviving spouse can still enjoy them...
Read more - 23.4.2024
Discretionary Trusts
What is a discretionary trust? With a discretionary trust, there is no automatic right for beneficiaries to receive funds from...
Read more - 31.10.2023
Constructive Trusts
Property rights are not always clear-cut. Sometimes, a person who does not legally own a property could be entitled to...
Read more - 16.3.2023
Are trusts protected from divorce?
Can trusts protect an inheritance from your spouse? A trust is a separate legal entity. Neither spouse owns its assets....
Read more - 2.8.2022
Do you need to register your trust?
The Trust Register was introduced in 2017 as part of anti-money laundering regulations. Previously, only trusts with a UK tax liability...
Read more 
6.7.2021Beware of setting up unnecessary trusts for children
Beware of Unnecessary Trusts in Your Will Understanding the Impact of Trusts Parents making a will should beware of setting...
Read more
