Breach of Trust Claims
Ideally, all trustees and beneficiaries would satisfy their roles in handling a trust and no conflict would arise. Ultimately, however, occasions will arise where trustees have caused loss to the estate and/or are facing a claim from a disgruntled beneficiary.
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Acting as a trustee or executor is a position of significant responsibility. Trustees are often required to manage substantial assets and make important decisions on behalf of others. When something goes wrong, or when actions fall short of the strict duties imposed by law, it can amount to a breach of trust, exposing the trustee to personal liability and triggering disputes with beneficiaries.
Our specialist Private Wealth Disputes team advises both trustees and beneficiaries in breach of trust claims, whether you are seeking to bring a claim or defend one. We understand the technical and emotional complexity that often surrounds these disputes and provide clear, strategic advice at every stage.
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What is a breach of trust?
A breach of trust occurs when a trustee fails to comply with their legal duties. Common examples include:
- Mismanaging or failing to safeguard trust assets
- Acting in their own interests rather than in the beneficiaries’ interests
- Failing to act impartially between beneficiaries
- Making unauthorised investments or transactions
- Poor record‑keeping or not providing proper accounts
- Distributing funds incorrectly or prematurely
- Failing to take advice where it is reasonable to do so
Even well‑meaning trustees can unintentionally breach their duties. Whether the issue stems from inexperience, misunderstanding, or intentional misconduct, the consequences can be serious.
Bringing a breach of trust claim
Beneficiaries who have concerns about the way a trust has been administered may have a right to seek remedies from the Court, including:
Financial compensation
Requiring a trustee to restore money or property to the trust if their actions caused loss
Removal or replacement of trustees
Where the relationship has broken down or the trustee is no longer suitable
Orders for accounts
Compelling trustees to produce full, accurate records of how trust assets have been managed
Injunctions
Preventing trustees from taking certain steps, for example, selling assets or making distributions while the dispute is ongoing.
Setting aside unauthorised transactions
Reversing decisions made outside a trustee’s powers.
We can assess your position swiftly, negotiate with the trustees where appropriate, and take decisive court action where necessary to protect the trust.
Defending Trustees in Breach of Trust Claims
For trustees, allegations of breach of trust can be extremely stressful and may create personal financial exposure. We regularly advise trustees on:
- Responding to complaints from beneficiaries
- Providing accounts or disclosure
- Defending court proceedings
- Applying for court directions where the correct course of action is unclear
- Resolving disputes before they escalate
- Protecting themselves from personal liability
Many claims can be avoided—or significantly reduced—through early legal advice and clear communication with beneficiaries.
Why timing matters?
Time is often critical in breach of trust cases. Delay can:
- Increase losses suffered by the trust
- Reduce the options available
- Lead to adverse cost consequences
- Prevent trustees from obtaining timely protective orders or directions
If you suspect a breach, or find yourself accused of one, obtaining advice at the earliest possible stage is essential.
Contact Us
If you are concerned about a breach of trust or need advice on defending a claim, our experienced Private Wealth Disputes team is here to help. Call us on 020 8290 0333 or email [email protected].
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