Trust Disputes Solicitors

I think a trustee is breaching their duties or mismanaging a trust, what are my rights?

Disputes over trusts often arise when beneficiaries are left in the dark or trustees fail to act
properly. If you’re concerned about trustee misconduct, unequal treatment, or a breach of
trust, our solicitors can help you challenge the situation and protect what you’re entitled to.

What is a trust dispute?

A trust dispute is a disagreement over how a trust has been created, interpreted, managed, or distributed. Trust disputes commonly involve:

  • Conflicts between trustees and beneficiaries
  • Concerns about how trustees are behaving or performing
  • Allegations that the trust itself is invalid or unclear
  • Property or funds in the trust being unfairly handled

Common types of trust disputes we help resolve

Trustee vs Beneficiary Conflict

Disputes between trustees and beneficiaries usually arise from concerns about fairness, transparency, or a breach of trust. Beneficiaries may feel excluded or treated unequally.

Trustees, meanwhile, often face conflicting demands. These disputes can escalate quickly without legal advice, especially when trust assets or property are involved.

Disputes Between Trustees

When co-trustees cannot agree, it can bring the administration of the trust to a standstill.

Common disagreements include how property is sold, how income is distributed, or how decisions are made.

If the conflict harms the trust or its beneficiaries, legal action or trustee removal may be necessary.

Allegations of Trustee Misconduct

Trustee misconduct includes misusing assets, favouring one beneficiary, or ignoring duties under the trust deed.

If a trustee is acting improperly or failing to communicate, it may amount to a breach of trust.

Legal advice can clarify your rights and help resolve the dispute before further damage is done.

Breach of Trust

A breach of trust occurs when a trustee fails to follow the trust deed or breaches their fiduciary duty to act in good faith.

This may involve misusing funds, favouring certain beneficiaries, failing to invest prudently, causing loss to the trust through incompetence, or withholding information.

Serious breaches can lead to personal liability, removal by the court, or legal action.

Interpretation of Trust Terms

Trust disputes often arise when the trust wording is ambiguous or unclear. Trustees and beneficiaries may disagree about how to apply specific clauses, identify beneficiaries, or interpret the settlor’s original intentions.

These disputes require close legal analysis to clarify rights, duties, and avoid costly mistakes. Sometimes, it is necessary to apply to court for a judge to decide how the trust should be interpreted.

Undue Influence or Lack of Capacity

A trust may be challenged if it was set up under pressure or the person lacked mental capacity at the time.

These cases often involve vulnerable individuals influenced by carers or family. If proven, the trust can be declared invalid, and the assets returned to the estate.

Disputes Over Trust Deeds

Trust deeds that are vague, outdated, or poorly drafted often lead to legal disputes. These may involve confusion over trustee powers, conflicting clauses, or unclear beneficiary
entitlements.

We help interpret the trust deed’s meaning and, where necessary, apply to court for guidance or rectification.

Variation of Trusts

Trusts can be varied in certain circumstances, either by court order or agreement between adult beneficiaries.

Variation disputes often involve disagreements about whether changes are lawful, beneficial, or in line with the settlor’s original wishes.

We advise both trustees and beneficiaries on their legal position and next steps.

Property Trust Disputes

Disputes over trust property often relate to who can live in it, whether it should be sold, whether the life tenant can move to another property funded by the trust, or how proceeds should be divided.

These disagreements are common when trusts hold family homes. Whether you’re protecting your interest or challenging a sale, early legal advice is essential.

Misuse of Funds or Failure to Account

If a trustee refuses to provide accounts, delays distributions, or can’t explain how funds have been used, it may indicate a breach of trust. Beneficiaries are legally entitled to certain information.

We can demand disclosure and take action if trust money has been misused or hidden.

What are the grounds to challenge a Trust?

Our contentious probate team can help you understand your chances of successfully disputing a trust.

You may be able to contest a trust if any of the following apply.

Each of these grounds is legally recognised and can form the basis of a successful claim, particularly where financial loss or unfair treatment has occurred:

  • Lack of capacity: The settlor didn’t have the mental capacity to understand the nature and effect of the trust when it was created. This often involves cognitive decline, dementia, or confusion during the signing process.
  • Undue influence or coercion: The trust was created under pressure, manipulation, or exploitation, particularly where one party benefited significantly and others were excluded without explanation.
  • Fraud or forgery: The trust document contains forged signatures, false information, or was executed using dishonest tactics to alter its terms or mislead the settlor.
  • Mistake or drafting error: The wording of the trust doesn’t reflect the settlor’s true intentions. This could be due to solicitor error, template misuse, or miscommunication at the time of drafting.
  • Sham trust: The trust isn’t genuine, for example, the settlor retained control while pretending to give assets away, often to avoid tax, or legal obligations. Courts can declare such trusts invalid.
  • Negligent legal or tax advice: The settlor received poor professional advice when creating the trust, which caused unintended tax consequences or failed to protect beneficiaries’ interests.
  • Breach of trustee duties: Trustees mismanaged the trust, acted unfairly, favoured certain beneficiaries beyond the discretion given by the trust deed, or failed to comply with the trust’s terms. Serious breaches may justify court intervention or removal.
  • Unfair treatment of beneficiaries: One or more beneficiaries have been excluded, underpaid, or denied access to information without justification. Trustees must act in good faith when deciding which beneficiaries to provide for from trust assets.
  • Prevention of reasonable financial provision: A trust has been used to sidestep obligations under the Inheritance Act, leaving dependents without reasonable financial support. These claims are time-sensitive and often urgent.

Can a Trustee Be Removed?

Yes, under the Trustee Act 1925 and the court’s inherent jurisdiction, trustees can be removed if they act improperly, have conflicts of interest, breach their duties, or obstruct the proper administration of the trust.

The court’s focus is always on protecting beneficiaries and ensuring the trust is properly administered. In cases involving serious misconduct or delay, we’ve acted swiftly to preserve trust assets, and seek the appointment of independent trustees.

Timing can be critical, especially as many trust-related claims, such as breach of trust, are subject to a six-year limitation period under the Limitation Act 1980.

However, in cases involving fraud or where a trustee has profited personally, no time limit may apply. Early advice ensures you don’t miss key deadlines or lose the opportunity to act.

How we can help you resolve trust disputes

Most trust disputes can be resolved without the need for court proceedings.

Our solicitors will guide you through a structured and proportionate process aimed at achieving a fair outcome, while preserving relationships where possible and protecting the trust’s value.

  1. Legal Advice: We begin by assessing your position, the strength of your claim, and the applicable legal framework.
  2. Pre-Action Correspondence: A formal letter of claim sets out your concerns and expectations, giving the other party a chance to respond constructively and avoid litigation.
  3. Negotiation or Mediation: Many disputes are settled through confidential discussions or mediation. This often leads to quicker, more cost-effective solutions with less stress for all involved.
  4. Court Proceedings: Where necessary, we will act decisively to protect your position. This may involve applying for an injunction, seeking removal of a trustee, or asking the court for guidance under the Trustee Act.

We offer a range of flexible funding arrangements, including no win no fee agreements, deferred payment options, and fixed fees where appropriate.

If you’re involved in a trust dispute and want clear advice from experienced solicitors, get in touch for a free, confidential consultation.

Contact Our Specialist Contentious Trust Solicitors today…

Awdry Law has 6 offices across Wiltshire and South West, including in Bath, Chippenham, Devizes, Marlborough, Royal Wootton Bassett, and Swindon. We regularly act for clients across England and Wales.

We have a dedicated contentious probate team in Bath who are ready to assist you with any trust or estate dispute.

If you are affected by any of these issues call us today on 01793 853200 or fill out our quick enquiry form below, to arrange a free initial consultation.

Our contentious trust lawyers are experts in handling sensitive disputes arising at difficult times for family and friends.

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