A trust is a legal arrangement designed to protect assets or wealth. Assets are placed into the trust by one person and managed by nominated trustees for the benefit of others. In simple terms: the settlor is the person who places assets into the trust the trustee is responsible for managing those assets the beneficiaries are the individuals who benefit from the trust Trusts are commonly used to protect family wealth, support children or vulnerable beneficiaries, or manage how assets are passed on as part of inheritance planning.

Why do trust disputes occur?

Disputes can arise where: the terms of a trust are unclear or open to different interpretations beneficiaries disagree with how trustees are managing assets trustees are alleged to have breached their duties family circumstances change in ways not anticipated when the trust was created When disagreements escalate, specialist legal advice is often essential to clarify rights, responsibilities and options for resolution.

What are the powers and duties of a trustee?

A trustee is legally responsible for assets held in a trust and is required to manage the trust in accordance with the settlor’s wishes (the settlor is the person whose monies/assets were placed into the trust). The powers of the trustee are provided by law and will also normally be set out in the will or trust deed. A trustee must: Deal with and manage the trust in accordance with the will or trust deed (including deciding how to use and invest the trust property/monies) Act impartially and fairly to all beneficiaries; Act with reasonable care and skill; Ensure trust assets are secure (including insuring trust property); Keep sufficient records in order to show that the trust has been managed properly; Not benefit himself/herself Trustees typically have the following powers: To delegate certain powers to professional bodies (such as solicitors or accountants); To be paid for their work (but only where they are a professional trustee, such as a solicitor or accountant).

What are the consequences for a trustee for breach of trust?

Where a trustee is in breach of trust (for example for failing to comply with the terms of the trust or breaching their fiduciary duty) the trustee has a personal liability to pay the trust/the beneficiaries for any losses suffered. The trustee may also be removed from their role.

Can a trustee be removed?

In certain circumstances trustees can be removed from their role. The trust document should be checked first to see if a power to remove trustees has been given or reserved. Otherwise, unless the trustee agrees to retire, you may have to apply to the Court to seek the trustee’s removal. Before hitting the nuclear button of an application to Court, it is important to explore all other avenues in order to ascertain whether or not the Court is the right forum or whether there is a less draconian method of resolving the issues.

Trust Disputes

Strategic advice for complex, cross-border trust and private wealth disputes.

When a trust or private wealth dispute arises, the consequences can be complex, personal and far-reaching. The stakes are high: assets may be at risk, family and business relationships can be damaged, and long-term financial and generational plans may be undermined. Clients facing these disputes require robust tactical guidance, long-term strategic insight and sensitivity which protects both their commercial and personal interests and - in the case of trustees and fiduciaries - enables them to discharge their duties effectively and protect their decision-making from criticism.

At Ashfords, we help beneficiaries, trustees, protectors and fiduciaries to navigate the most complex and sensitive trust and private wealth disputes in the UK and across multiple jurisdictions, often involving cross-border interests and offshore structures. We provide clear, tailored and strategic advice which is designed to resolve disputes efficiently while safeguarding assets, preserving value and protecting long-term relationships. Our lawyers are recognised for their experience in high-value, novel and multi-jurisdictional trust and private wealth disputes, with knowledge of leading onshore and offshore jurisdictions; in recent years, they have acted on cases in England, Jersey, Guernsey, Switzerland, the BVI, the Bahamas, the Middle East and Hong Kong. We regularly work with a network of correspondent offshore law firms in these jurisdictions in order to provide a comprehensive service to our clients.

Our approach

We take a strategic, solutions-focused approach to trust disputes. Our aim is always to resolve matters in a way that protects assets, limits costs and preserves relationships where possible.

Early involvement and litigation-proofing

We encourage prevention rather than cure. This means working closely with our clients, their advisors and our Private Wealth Team to review trust structures before they are established (or shortly thereafter), consider the financial and tax position, the objectives of the parties involved, and to "stress-test" the structures so that they can anticipate and mitigate future disputes. This allows us to identify the real drivers of the dispute and (often) avoid them altogether. Our trust, tax and wealth-planning capabilities, alongside our disputes expertise, allows us to offer a fully coordinated service to clients in this sector.

Clear strategy and collaborative approach

Where a dispute has arisen, we provide a straightforward assessment of your legal position, setting out the available options, likely costs and timescales. This enables you to make informed and defensible decisions at every stage. Where required, we draw on our international networks of close contact law firms and professional advisors for jurisdiction-specific expertise.

Decisive action

We implement the agreed strategy efficiently. This may involve negotiation, mediation or, where necessary, court proceedings.

We are committed to resolving trust disputes as efficiently and cost-effectively as possible. For us, court is a lever, not a destination. We are experts in all forms of Dispute Resolution, including Alternative Dispute Resolution (ADR), and use this to provide confidential, commercial, and creative solutions that preserve assets and relationships. Our focus is on finding the right solution for you.

An integrated team for complex trust and private wealth disputes

Trust and private wealth disputes rarely exist in isolation. They are often closely connected to tax planning, investment structures, property ownership, business interests, and international asset structuring. Addressing them effectively requires a team that sees the whole picture.

Our Private Wealth Disputes specialists work as one team with Ashfords’ leading experts in Tax, Corporate, and Property law, ensuring that all aspects of your situation are addressed together. This joined-up approach allows us to deliver practical, commercially sound solutions that stand the test of time. From restructuring a family trust to resolving a conflict over a corporate holding, we provide seamless, strategic advice that protects the integrity of the trust and the value of its assets.

Cross-border trust and private wealth disputes

Many modern trust disputes involve assets, trustees or beneficiaries in more than one jurisdiction.

We regularly handle cross-border contentious trust matters, working with a global network of leading law firms and professional advisers. This allows us to coordinate complex international disputes efficiently, without the cost or rigidity of a global law firm structure. We can provide seamless, cross-border advice, managing complex litigation and coordinating strategy across jurisdictions from the UK to Asia, the Middle East and all of the major offshore financial centres. Our lawyers are experienced in resolving disputes in foreign Courts, with successful outcomes in Jersey, Hong Kong, the Caribbean and the Middle East (amongst others).

In addition to more "traditional" trust structures, our lawyers' experience extends to offshore foundations and commercial trust disputes involving security trustees, financial institutions, price-sensitive investment holdings and underlying structures that are financially distressed. We are unique amongst our immediate competitors in being able to offer this highly specialised service.

Types of trust disputes we advise on

We advise beneficiaries, trustees (both individual and professional - including corporate service providers), protectors, and other fiduciaries on the full spectrum of complex, high-value trust disputes (both onshore and offshore).

Breach of Trust Claims: Pursuing or defending claims against trustees for professional negligence, mismanagement of trust assets, improper investments, or conflicts of interest.
Trustee Removal and Appointment: Applications to the court to remove and replace trustees who are not acting in the beneficiaries’ best interests.
Disclosure of Information: Advising both beneficiaries and trustees on their rights and obligations regarding trust documents and information.
Challenging Trustee Decisions: Disputes over the exercise of a trustee’s discretion.
Trust Validity Claims (including attacks by third parties): Actions to set aside a trust on grounds of sham, mistake, or undue influence.
Court Applications: Seeking the court’s blessing for momentous decisions or guidance on the interpretation of a trust deed.
Applications to set aside transactions: we have extensive experience of complex applications to Court to set aside transactions based on the principles of mistake and Hastings Bass, to avoid unintended tax and legal consequences both onshore and offshore. Our lawyers have been responsible for precedent-setting cases in this area and have successfully set aside transactions involving overseas dividends and shares, offshore foundations and bare trusts, saving clients £millions in unintended tax consequences.

Our experience in trust litigation

Coordinated cross-border trust litigation: Acting for a beneficiary excluded from distributions of a £10m+ Guernsey trust based on a controversial letter of wishes. Working with our offshore partners to advise on proposed proceedings in the Royal Court of Guernsey and the English High Court for disclosure of the same.
Mistake application to set aside unintended tax consequences: Acting for the founder of a Jersey foundation on a (successful) mistake application to Court to set aside historic endowments to the foundation causing substantial unintended tax liabilities.
Complex historic trust validation: Advising the trustee of a complex baronetcy settlement with a landed estate. Working with leading trusts counsel and tax advisors to validate significant historic modifications and explore further changes to modernise the settlement to achieve tax-efficient estate planning for multi-generational families.
Unwinding commercial trusts: Acting for trustees to rectify or unwind the trust to allow the trustees to use the fund for its proper purpose.

Why choose Ashfords?

Our team is consistently ranked in the top tier by independent legal directories Chambers & Partners and The Legal 500. Our lawyers are full members of the Association of Contentious Trust and Probate Specialists (ACTAPS) and the Society of Trust and Estate Practitioners (STEP). They speak regularly at international conferences, most recently at the Trusts in Litigation conference in Lisbon and at Fresh Perspectives in Barcelona.

FAQs

What defences are available for a breach of trust?

Get in touch

If you are facing a dispute involving a trust, contact us for a confidential discussion. We will provide a clear assessment of your situation and a strategic plan to protect your interests.

Contact us on freephone 0800 0931336, by email willdisputes@ashfords.co.uk, or via the contact button below for a no obligation chat to see how we can help.