Trusts Litigation
A trust is a legal relationship where one party (the trustee) holds property for the benefit of another party (the beneficiary or beneficiaries). The trustee manages the trust assets, in accordance with the governing rules of the trust deed, and subject to the rules of the trust, the trustee would generally be entitled to distribute trust assets to any beneficiaries as and when the trustee deems it appropriate.
Disputes can arise as to the management of the trust and trust assets, such as disputes between the beneficiaries and trustees as to how the trust is managed – if there is a written trust deed, then advice can be given as to the parties’ actions and whether it is improper or not.
​
Other times, trust disputes can arise without a written trust deed or agreement, but arises simply by the conduct of parties to a transaction. Trusts and equity law can impose constructive trusts to prevent parties from benefiting as the result of unconscionable conduct. Constructive trusts are nearly impossible to define (as many judges have said themselves in addressing trust litigation cases), and may be best demonstrated with the following example:
​
A daughter pays $200,000 to purchase a property for her mother to live in.
The mother insists that the property must be registered in her name (she is worried of the appearance that she is renting the property from her daughter, and how her friends might perceive that situation). Even though the mother hasn’t paid for the property, the daughter and her mother the property can be in the mother’s name so long as the daughter is gifted the property by her mother’s will.
If the mother made a will contrary to this, such as to give the property to a different child, then the daughter could argue that the property was held for her under a constructive trust, and so the property ought to be transferred to her – irrespective of what the mother’s will might say.
Trusts litigation is often complex and technical, and so it is crucial you have effective legal advice to protect your rights. If you are aggrieved by a breach of trust issue, Ashton Estate Lawyers can assist – please contact us for a free 15-minute telephone discussion as to your circumstances and what can be done to safeguard your rights.