Trust and Trustee Disputes

Trustees owe a duty of care and skill in the administration of trusts, both under statute and common law. Trustees are required to exercise their duty, when managing trust affairs, in the same way that an ‘ordinary prudent made of business would do’ and to exercise such care and skill is reasonable in the circumstances.

Disputes can arise due to the conduct of the Executor(s),such as:

• Maladminstation of the trust
• Misuse of trust assets
• The trustees commit a fraudulent or negligent breach of trust
• Misappropriation of estate funds
• A trustee lacks the capacity to fulfil their duties
• The trust is a “sham” seeking to conceal the true owner of property

Depending on the circumstances and facts of the dispute, the Trustee(s) may become personally liable or face an application to have them removed from their role.