Trustee Disputes and Protection Solicitors

When Trustees Face Difficulties

Trustees play a vital role in managing assets for others. Their duties require honesty, impartiality, and diligence but in practice, conflicts often arise. Disputes can develop between co-trustees, between trustees and beneficiaries, or even among beneficiaries themselves. Trustees may also face uncertainty about whether a proposed course of action is lawful or exposes them to risk.

At IMD Solicitors we advise trustees and beneficiaries in trust disputes of all kinds. We have particular expertise in Beddoe applications, court directions, and blessing applications,  giving trustees confidence that their decisions are protected and legally sound. Our focus is always on pragmatic solutions that safeguard trust assets and minimise the risk of personal liability.

Common Trustee Disputes

We act in disputes involving:

• Alleged breach of trust or failure to account
• Conflicts between co-trustees or between trustees and beneficiaries
• Mismanagement or misappropriation of trust funds
• Disputes over interpretation of trust deeds or powers
• Requests for disclosure or accounts from beneficiaries
• Applications to remove or replace trustees where relationships have broken dow

Many disputes can be resolved through careful dialogue, clear communication, and timely professional advice, ideally without the need for contested court proceedings.

Trustee Duties and Personal Liability

• Trustees owe strict fiduciary duties. They must:
• Act in the best interests of all beneficiaries
• Follow the terms of the trust instrument
• Avoid conflicts of interest
• Keep proper accounts and records
• Act impartially between beneficiaries
• Not profit personally from their position unless authorise

Failure to meet these duties can expose trustees to personal liability.  This may include having to reimburse losses suffered by the trust. Early advice is essential to avoid unnecessary risk.

Trustee Protection Applications

Where trustees face uncertainty or hostility from beneficiaries, the courts provide mechanisms for protection and reassurance. We regularly act in:

• Beddoe applications – where trustees seek the court’s approval to bring or defend litigation at the expense of the trust, ensuring indemnity for costs.
• Court directions – where trustees require the court’s guidance on how to exercise their powers or deal with complex circumstances.
• Blessing applications – where trustees seek approval for a significant decision, protecting them from later criticism or challenge.

These applications are invaluable for trustees seeking to act prudently and transparently. With careful preparation, they often prevent disputes escalating further.

How We Can Help

Our team advises trustees, beneficiaries, and co-trustees on:

• The scope of trustee powers and duties
• Bringing or defending breach of trust and removal applications
• Obtaining court directions or Beddoe relief
• Managing complex decisions requiring judicial blessing
• Negotiating and mediating disputes to avoid litigation
• Protecting trustees from personal financial exposure

We also advise beneficiaries seeking disclosure or accountability from trustees and can apply to the court to compel information where appropriate.

Our Approach

• Balanced and pragmatic – we recognise the pressures trustees face and the sensitivities of family or commercial trusts
• Specialist expertise – our solicitors combine deep trust law knowledge with strong litigation experience
• Clarity and reassurance – we explain complex issues in straightforward terms, helping clients make informed decisions
• Cost transparency – we discuss funding and indemnity at the outset, ensuring there are no surprises

Frequently Asked Questions

What is a Beddoe application?
A Beddoe application allows trustees to seek the court’s permission to use trust funds to cover their legal costs in bringing or defending proceedings.

When should trustees apply for directions?
When a proposed course of action involves risk or uncertainty — for example, selling trust property, resolving beneficiary conflict, or engaging in litigation.

Can trustees recover their legal costs?
Generally yes, provided they act properly and within their powers. However, trustees who act unreasonably or in breach of duty may lose that right.

Can beneficiaries compel disclosure?
Beneficiaries are entitled to see trust accounts and relevant documents. Trustees who refuse disclosure may face court orders or removal.

Example Cases

• Acted for the trustees of a discretionary Employee Benefit Trust in resisting disclosure requests about distribution decisions alleged to be prejudicial to beneficiaries.
• Secured the removal of an executor who refused to cooperate with co-executors, together with a substantial costs award.
• Acted for executors seeking the court’s protection before commencing proceedings against third parties, obtaining a Beddoe order and pursuing the litigation successfully.
• Obtained court directions for trustees on complex management decisions involving multiple beneficiaries

Get in Touch

If you are a trustee seeking guidance or protection, or a beneficiary concerned about the management of a trust, our specialist solicitors can help.
Call 0330 107 0107 or request a confidential consultation.
We have offices in London, Manchester and Birmingham and act for clients across England and Wales.