By Tara Grant - 15 Nov 2012
Trusts are often set up to protect family assets and are
administered by the family members themselves. While such trusts
may have lower administration costs than those involving
professional trustees, they are at higher risk of being impaired by
disputes between trustees.
Trust property must be dealt with in a way that promotes the
welfare of the beneficiaries. If conflicts arise between trustees
their ability to deal with trust property may be inhibited. This
may have a negative impact on the beneficiaries.
Such a situation may arise if the trustees are spouses or
siblings and the relationship between them breaks down.
The High Court has a reserve power to remove a trustee (or
trustees) in such a situation. A key element is whether the actions
of, or dispute between, the trustees has had a negative impact on
the welfare of the beneficiaries. If this can be shown it is likely
the Court will exercise its power of removal, so that trust
property can be properly administered.
If a dispute between trustees arises, the key is to take advice
quickly so that the dispute can be resolved in the most efficient
manner possible.
Contacts
Tara
Hurley