Trust Disputes and Removal of Trustees – Specialist Lawyers
Trusts are often set up to protect family wealth, property, or compensation, but they can also lead to disagreements. Trustee disputes may arise between trustees and beneficiaries, between trustees themselves, or even with the person who created the trust in the 1st place(the settlor). At Bonallack & Bishop, our litigation solicitors have extensive experience in handling trustee disputes. We act for trustees, beneficiaries and settlors in both straightforward and highly complex cases.
We understand that disputes about trusts often involve close family members and can be particularly stressful. Our goal is to resolve issues as quickly and cost-effectively as possible, using negotiation where we can, but robust litigation when necessary.
Worried about a possible Trustee Dispute? Call our specialist lawyers on FREEPHONE 0800 1404544 or one of our 4 local office numbers for FREE initial phone advice – with no strings attached.
Why choose Bonallack & Bishop for trustee disputes?
- Specialist litigation solicitors – our team has extensive experience in resolving trust and inheritance disputes of all types.
- Genuine trust expertise. Our extended team includes a highly experienced solicitor who specialises in trust creation and administration. In fact, the experience of Elizabeth Webbe, a full member of STEP (the Society of Trusts and Estates Practitioners), is shown by the fact that used to lecture to other solicitors nationwide on trusts
- Independent professional trustees – our partners are frequently appointed to act as neutral, professional trustees where an independent third party is needed. This can help rebuild trust between family members and ensure the trust is managed fairly.
Click here to find out more about our professional trustee service - Clear, practical advice – we explain your rights and options in plain English so you can make informed decisions.
- Cost-effective solutions – we aim to resolve disputes quickly and avoid unnecessary court action wherever possible.
- Nationwide service – we represent trustees, beneficiaries, and settlors throughout England and Wales.
Whether you need legal advice on removing a trustee, defending a claim, or appointing an independent person to manage the trust impartially, our solicitors can help you find a practical and lasting solution.
Can a trustee be removed without consent?
Yes, depending on the circumstances, that may be possible, and they will not always need to consent to their removal. They can be removed either by powers set out in the trust deed itself, by agreement between the other trustees and beneficiaries, or ultimately by applying to the court. Courts have the power to remove a trustee where it is in the interests of the beneficiaries and for the proper administration of the trust.
How to remove a trustee from a UK trust
The exact process depends on the type of trust and the wording of the trust deed. Common routes include:
- Using powers in the trust deed – many deeds contain a clause allowing certain individuals, such as the settlor or surviving trustees, to remove and replace a trustee.
- By agreement – sometimes trustees voluntarily step down, especially if relations have broken down.
- Court application – if there is no agreement, or the trust deed does not provide for removal, the court can remove a trustee under the Trustee Act 1925 .
Our solicitors regularly advise on which route is available and most practical in your circumstances.
Reasons for removing a trustee
They can be removed for a variety of reasons, including:
- Mismanaging trust assets.
- Failure to act in the best interests of beneficiaries.
- Conflicts of interest.
- Inability or unwillingness to carry out their duties.
- Serious breakdown of trust and confidence with beneficiaries.
Grounds for removing a UK trustee
The courts generally look for evidence that continuing with the current trustee would jeopardise the trust’s proper management. Grounds often include:
- Negligence – such as poor investment decisions or failing to keep proper records.
- Misconduct – for example, stealing from the trust or favouring certain beneficiaries unfairly.
- Incapacity – where they have become mentally incapable or physically unable to act.
How long does removal take?
Timelines vary. If they agree to step down, the process can be relatively quick – sometimes a matter of weeks. If court proceedings are needed, it can take many months or longer, depending on the complexity of the trust and whether the trustee challenges the application. Our solicitors can give you a realistic timescale once we understand the details of your particular case.
Can beneficiaries remove a trustee?
Beneficiaries cannot usually remove a trustee directly unless the trust deed gives them that power. However, beneficiaries can ask the court to intervene if they can show good reasons for removal. This is one of the most common because of trustee disputes.
Removal of trustees – an overview
Removal is always a serious step. Trustees have wide powers and duties, and courts are cautious about replacing them unless there is a clear need. However, beneficiaries are not powerless. If a trustee is acting improperly, the law provides several options to ensure the trust is run fairly.
Is it difficult to remove a trustee?
It can be challenging. Trustees are given legal authority, and courts are reluctant to interfere unless there is strong evidence of misconduct, incapacity or mismanagement. However, with experienced legal advice and a well-prepared case, they can and do get removed where it is in the interests of the trust.
How do I remove myself as trustee?
If you no longer wish to act, you may be able to retire. The trust deed often sets out the procedure, which usually involves signing a deed of retirement and appointing a replacement. If the trust is silent, the Trustee Act 1925 allows a trustee to retire provided there are at least two trustees (or a trust corporation) left in place.
Our team can prepare the necessary documents and ensure the retirement is done properly.
Trustee disputes –negligence and misconduct
Can you sue for negligence?
Yes. Beneficiaries can bring negligence claims against trustees if they have suffered financial loss because the trustee acted negligently – for example, making reckless investment decisions or failing to keep proper accounts. In the circumstances, trustees may be personally liable to compensate the trust.
Can a trustee go to jail for stealing from a trust?
Yes. If a trustee steals trust property or deliberately defrauds the beneficiaries, this can amount to criminal theft or fraud. In addition to being removed and sued for compensation, they could face prosecution and imprisonment.
How long can a trustee hold funds?
Trustees are expected to distribute funds within a reasonable time. While some delays may be justified (for example, waiting for tax clearance or selling assets), they cannot withhold money indefinitely. Beneficiaries can challenge unreasonable delays and ask the court to order distributions.
Can a trustee withhold money from a beneficiary?
Trustees must follow the terms of the trust. If the trust gives them discretion, they may be able to decide when or how much a beneficiary receives. However, they cannot act unfairly or refuse to pay without proper justification. Withholding money without good reason can amount to breach of trust.
When co-trustees can’t agree
Disagreements of this type are common. They may have different views on investment, property sales, or distribution of funds. Where co-trustees cannot agree, this can paralyse the trust. In serious cases, the court may step in to give directions or even remove one or more trustees to allow the trust to function properly.
Can a co-trustee be removed?
Yes, depending on the circumstances, that may be possible. A co-trustee can be removed for the same reasons as any other trustee – such as misconduct, incapacity or serious disputes that prevent the trust being managed effectively.
Can a beneficiary remove themselves from a trust?
Not directly. If you are named as a beneficiary, you usually cannot simply remove yourself. However, you can disclaim or “give up” your interest in the trust if you do not wish to benefit. This is a formal process that should be documented in writing.
Can the settlor remove a trustee?
It depends on the wording of the trust deed itself. Some deeds give the original settlor the express power to remove trustees. If not, the settlor cannot remove them unilaterally and may need to apply to the court for an order to do so.
Removing a beneficiary from a family trust
This is much harder. Once a trust is set up, beneficiaries usually have a fixed right to benefit. Trustees cannot simply remove a beneficiary unless the trust deed gives them express powers to do so.
Otherwise, the only option is a court application, which is rare and only granted in limited circumstances.
Removing an incapacitated trustee
If a trustee loses mental capacity or becomes physically unable to manage their duties, they may need to be removed to protect the trust. In some cases, the trust deed itself sets out a procedure for replacing an incapacitated trustee. If not, an application can be made to the court or, where appropriate, to the Court of Protection. The court will usually require medical evidence of incapacity before making such an order. Acting quickly is important, as leaving an incapacitated trustee in place can make it difficult or even impossible for the trust to function properly.
Need an independent trustee?
If your trust has become difficult to manage or there is disagreement between trustees or beneficiaries, appointing an independent professional trustee can often resolve the problem. Our partners regularly act in this role, providing impartial oversight and ensuring the trust is run correctly and fairly. Contact the team here atBonallack & Bishop today to discuss how we can help stabilise your trust and protect everyone’s interests.
Resolving trustee disputes through mediation
At Bonallack & Bishop, we are strong supporters of mediation and other forms of alternative dispute resolution (ADR). Trustee disputes often involve family members or long-standing personal relationships, and formal court proceedings can make matters worse.
Mediation offers a confidential and far less confrontational way to reach an agreement, saving both time and legal costs. Our solicitors are highly experienced in preparing for and representing clients during mediation, helping you find practical, lasting solutions without the stress of going to court.
Does it matter if the trust is revocable or irrevocable?
Yes, the type of trust can affect how and when a trustee can be removed. In the UK, most trusts are irrevocable, meaning they cannot easily be changed or cancelled once created. In these cases, removing a trustee usually depends on the powers set out in the trust deed or, if necessary, a court order.
If the trust is revocable, the settlor often retains the power to amend or revoke it entirely. This may include the ability to remove and replace trustees without going to court. However, revocable trusts are relatively uncommon in England and Wales – they are more typical in other jurisdictions, such as the United States.
Our experienced trust solicitors can review your trust deed to confirm which type of trust you have and what removal options are available in your specific situation.
Removing a trustee from a declaration of trust
A declaration of trust (often used to record ownership shares in property) is a form of trust, so the same basic legal principles apply. However, because these trusts are usually created for a single asset—most commonly a house—the process of removing a trustee can be more straightforward. If the declaration of trust includes wording about appointing or replacing trustees, that clause must be followed. If it doesn’t, removal can still be done by a formal deed of retirement and appointment, provided at least two trustees (or a trust corporation) remain.
Where there is disagreement or suspicion of misconduct, an application can be made to the court. It’s important to handle this properly, especially where the property is registered with HM Land Registry, as the change of trustees will need to be recorded on the title deeds.
Trustee disputes – next steps?
If you are involved in a trust dispute or are considering removing a trustee, contact our specialist litigation solicitors today. We will discuss your situation, explain your options, and outline the likely costs and timescales.
Call us now on FREEPHONE 0800 1404544 for FREE initial phone advice or complete our online enquiry form and we will get back to you promptly.
