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.
A trust dispute is a disagreement over how a trust has been created, interpreted, managed, or distributed. Trust disputes commonly involve:
Trust disputes sit within contentious probate but differ from a will dispute: a will dispute challenges how an estate passes on death, whereas a trust dispute concerns a trust created either during the settlor’s lifetime or by their will.
The three roles in every trust are the settlor (who creates the trust and provides the assets), the trustee (who holds and manages those assets), and the beneficiary (who benefits from them).
A trustee owes a fiduciary duty to act honestly and in the best interests of the beneficiaries. These duties define when conduct crosses into a breach.
A trustee must:
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.
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.
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.
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.
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.
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.
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.
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.
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.
Family trust disputes of this kind can be especially difficult, as they involve both significant money and close family relationships. A property trust dispute is often the point at which a family trust breaks down, so early, sensitive advice matters.
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.
Challenging a trust involves proving that something was legally wrong with how it was created or managed. Our contentious probate team can help you understand your chances of successfully disputing a trust.
To challenge a trust, one of the following recognised grounds needs to apply. Each can form the basis of a successful claim against trustees, particularly where financial loss or unfair treatment has occurred:
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.
A beneficiary is entitled to know that a trust exists and to understand their interest in it. Trustees must be able to account for their decisions.
In practice, a beneficiary can usually request:
Trustees are not obliged to disclose their reasons for exercising a discretion, nor a letter of wishes in every case. Disclosure sits within the court’s discretion, following Schmidt v Rosewood Trust.
A trustee who refuses reasonable requests, delays accounts, or cannot explain how trust funds have been used may be in breach of trust, giving grounds to compel disclosure or seek their removal.
The cost of a trust dispute depends on whether it settles early or proceeds to court. Most claims resolve through negotiation or mediation, keeping costs proportionate.
Responsibility for costs falls into three broad positions:
Awdry Law offers flexible funding for these matters, including no win no fee agreements in qualifying cases, deferred payment, and fixed fees where appropriate.
It is common for a trustee to be a beneficiary of the same trust, particularly within family trusts. This dual role can create a conflict of interest, especially where a decision affects that trustee’s own share.
A trustee-beneficiary must still act impartially, keep proper accounts, and treat every beneficiary fairly.
Trust disputes and contentious probate are closely related, though they are not the same thing. A trust dispute focuses on how a trust is created, managed, or distributed, whereas contentious probate deals with disagreements over a deceased person’s estate and will.
The two often overlap, particularly where a will creates a trust, and our contentious probate team handles both.
Disagreements between trustees can bring the administration of a trust to a standstill, delaying distributions and putting assets at risk. The court can step in to give directions under the Trustee Act where co-trustees reach a deadlock.
In more serious cases, it may remove a trustee and appoint an independent professional to restore progress.
A discretionary trust can be challenged on the same grounds as any other trust, including undue influence, lack of capacity, or a breach of trust.
Beneficiaries of a discretionary trust have no automatic right to a fixed share, which can make these disputes more complex than most.
We can help you challenge how trustees exercise their discretion where those decisions are made unfairly or improperly.
Resolving disputes within a trust is often possible without court proceedings. We help clients resolve trust disputes at every stage, and most matters are resolved long before a hearing.
Our contentious trust 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. Here are the typical steps we take to help you resolve sensitive trust disputes:
Seeking early advice gives you the best chance of resolving matters quickly, keeping costs proportionate and relationships intact.
If you’re involved in a trust or trustee dispute and want clear advice from experienced solicitors, get in touch for a no-obligation, consultation today by calling us on 01225 417111 or by completing our quick enquiry form below.
Our solicitors advise on contentious trust matters of every kind, and regularly bring and defend claims against trustees on behalf of both trustees and beneficiaries. For advice on trust disputes you can rely on, speak to our team today.
If you’re involved in a trust or trustee dispute and want clear advice from experienced solicitors, get in touch for a no-obligation consultation today by calling us on 01225 417111 or by completing our quick enquiry form below.
