Trust disputes

Hugh James advised the beneficiaries of a discretionary trust based in Jersey the assets of which included commercial property and family businesses estimated to be worth £120m in the following actions:

• claim for an inventory and account;
• undue influence in relation to letters of wishes prepared by the settlor;
• challenging the actions of various parties to the trust, including the protector and co-directors; and
• advising in relation to the validity of various transfer made into trust.

Following mediation and a number of board meetings we were able to resolve the trust dispute without the need to issue court proceedings to the benefit of our client beneficiaries.

Roman Kubiak acted for a beneficiary in a trust dispute seeking removal of the trustees, pursuing a breach of trust claim and seeking restitution (return of assets taken in breach of trust) to the trust.

The defendants were trustees and beneficiaries and it is contended that the trustees have made a number of bad investment decisions, failed to seek proper advice, failed to pursue a solicitor for previous negligence, appointed large sums of capital to the life tenant to the detriment of our client and failed to act in our client’s best interests.

Hugh James acted for the beneficiaries of a discretionary trust which had, at various times, altered its proper law between England and Wales and Jersey in relation to claims:

• to remove the trustees;
• for breach of trust; and
• pursuing a complaint to the Channel Islands Financial Ombudsman.

The main asset of the trust was a property in the heart of London valued at £10m.

Following negotiations we were able to conclude matters on terms which ensured the effective running of the trust.

We represented the trustee of a trust for a child which had arisen following the death of her mother in very tragic circumstances. The action was brought against the trustee on behalf of the child’s father who was incarcerated.

Despite being instructed at the last minute we were able to act quickly in resolving the trust dispute and, ultimately, shielded our client from an adverse costs order whilst also taking steps to seek a civil restraint order to avoid future claims.

Roman Kubiak has been advising the executor of a will in relation to a claim by a Gibraltan trust company to set aside a property purchase by the executor of an estate asset. In addition, the trust company issued a claim seeking a full inventory and account.

We were able to find serious flaws in the claims and the manner in which the trust company had conducted itself and therefore applied to strike out the claim in the High Court.

Yes. We offer a free 20 minute telephone consultation.

In many cases we’re able to offer a range of flexible pricing options including “no win, no fee” agreements, fixed fees and deferred payment arrangements depending on each case.

Some cases may also be suitable for “After the Event” insurance funding which provide cover for the cost of disbursements such as court and expert fees as well as protecting you from any potential adverse costs order.

A trust is a legal concept under which legal title to assets originally belonging to a person (known as the settlor) are transferred to another person, persons or corporation (known as the trustee) for the benefit of a third party (known as the beneficiary).

Trusts are recognised in most common law jurisdictions such as England and Wales and the Channel Islands.

People create trusts for a variety of reasons including to safeguard assets for loved ones, a part of their general tax planning or to achieve certain objectives or purposes.

A trustee is the person or corporation tasked with administering the trust for the benefit of the beneficiaries.

A trustee therefore has certain powers and duties (often set out in the trust deed and legislation) and must generally strike a fair balance between the beneficiaries whilst also ensuring that they preserve and maximise the value of the trust.

Although trustees will usually hold the legal title to assets, they do so on behalf of the beneficiaries.

Trustees can usually bring and defend legal proceedings on behalf of the trust.

A beneficiary is a person who is entitled to benefit under a trust. They can call on the trustees to take certain steps and to account for their dealings with the trust and its assets.

Where trustees are not acting in accordance with their duties they can be held to account and sued by the beneficiaries.

A settlor is the person who creates the trust and whose assets generally comprise the trust, at least on its inception.

Protectors are usually seen in offshore and higher value discretionary trusts and are people who are tasked with overseeing the trustees’ administration of the trust and exercise of discretion. They are usually appointed by the settlor.

Protectors may sometimes have the power to add and remove trustees.