About trust disputes
A settlement / trust may be created for many reasons:
- Funds can be placed into them for the benefit of future generations, such as children and grandchildren.
- For children who the settlor is concerned may not be responsible enough to receive money unconditionally.
- To look after funds for the interests of vulnerable people worried about funding long term care.
- Tax planning purposes.
They can be created during the lifetime, so that assets transferred into them immediately, or created via a Will.
There are a number of important features regarding trustees who manage a trust fund:
- They must all agree to each decision, unless the trust instrument gives powers for a majority decision to be reached.
- All trustees have a fiduciary duty to the beneficiaries of the trust.
When the trust was set up, the settlor made a deliberate choice as to who they wanted to manage the trust fund. However, sometimes things don’t work out as well as expected, and disputes between trustees, or even between trustees and trust beneficiaries, can have impacts on the efficient management of the trust.
And of course, trust disputes can have severe effects on those who are intended to benefit from trusts – the beneficiaries.
Resolving a dispute between trustees can often be facilitated through mediation. This route is often more cost effective and efficient and results in a binding agreement between the parties involved in the dispute.
However, where mediation is not suitable, or the dispute could not be resolved at that stage, it may be necessary to seek legal advice.
Whatever stage you are at in trying to resolve your issues, please contact us for our expert advice.
Contact us for an initial discussion on your concerns
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Phone: 01623 325035