Trust disputes can affect the management, control and distribution of significant personal, family and business assets. They may arise from the interpretation of a trust deed, the conduct of a trustee or competing views about how trust property should be administered.
GLG Legal advises trustees, beneficiaries, appointors, family members and other parties involved in trust disputes. We examine the trust structure, the trustee’s legal responsibilities, any legal complexities and the practical consequences of the dispute before recommending an appropriate course of action.
Our trust dispute lawyers assist clients through negotiation, dispute resolution and court proceedings. We focus on protecting the client’s position while pursuing a legally sound and commercially appropriate outcome.
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A trust dispute is a disagreement concerning the establishment, interpretation, administration or control of a trust. It may involve questions about the trustee’s decisions, the rights of beneficiaries, the ownership of trust property or whether a person has complied with their obligations under the trust deed and the law.
Trust disputes may arise in relation to:
Trust disputes can develop over time or arise from a particular transaction, distribution or change in control. They often involve complex documents, competing interests and strained family or commercial relationships.
The underlying issue is not always immediately apparent. Resolving the dispute may require a detailed review of the trust deed, financial records, correspondence, resolutions, variations and the history of the trust administration.
Common disputes relating to trusts include:
There is no single process for contesting a trust. The available grounds and remedies depend on the nature of the trust, the documents governing it and the conduct being challenged.
A dispute may arise where it is alleged that:
Trustees control and administer trust property, but they must exercise their powers in accordance with the trust deed, applicable law and their trustee duties. Depending on the trust, those duties may include acting honestly and in good faith, avoiding unauthorised conflicts, preserving trust property, keeping appropriate records and properly considering the exercise of discretionary powers.
Beneficiaries may have rights to due administration of the trust and, in appropriate circumstances, access to certain trust information. However, the nature of those rights depends on the trust structure, the terms of the deed and whether the beneficiary has a fixed, contingent or discretionary interest.
Disputes between trustees and beneficiaries commonly involve:
These disputes can be particularly sensitive where the parties are family members or have continuing business relationships. Family dynamics may influence the disagreement, but the legal position must be assessed by reference to the trust documents, evidence and applicable trust law.
A breach of trust may occur when a trustee acts contrary to the trust deed, exceeds the scope of their authority or fails to perform a legal or equitable duty.
Examples may include:
Conflict or dissatisfaction does not automatically justify removing a trustee. The central question is generally whether the trust can continue to be administered properly and in the interests contemplated by the trust.
A trustee may be replaced under a power contained in the trust deed or, where that process is unavailable or ineffective, through an application to the court.
Circumstances that may support removal can include:
Trust disputes can overlap with estate disputes and estate administration, particularly where a deceased person established a testamentary trust or held powers and interests within an existing family trust.
These estate matters may involve trust law, estate law, probate and broader succession planning issues. They are distinct from ordinary Will disputes, and contesting a Will does not necessarily determine the ownership or control of assets held through a trust.
Our wills and estates dispute lawyers advise on disputes involving deceased estates, probate, executors and testamentary trusts.
Disagreements may concern:
Trust disputes often sit within wider arrangements concerning private wealth, asset protection, tax planning and business succession.
Our private advisory and tax lawyers advise private clients, business owners, investors, trustees and family groups on trust structures, taxation matters, asset protection and long-term wealth planning.
Disputes involving charitable purposes can raise different governance and regulatory considerations. Learn more about GLG Legal’s work with charitable trusts.
GLG Legal provides clear, strategic advice to trustees, beneficiaries, appointors, family groups and businesses involved in trust disputes.
We consider the legal merits, evidence, costs and wider commercial or family consequences of each available option. This allows clients to make informed decisions about resolving disputes, protecting assets and managing future risk.
Our Brisbane-based lawyers assist clients with:
If you are involved in a dispute concerning a trustee, beneficiary, trust deed or trust property, obtain advice before taking legal action or dealing with the assets in dispute.
Contact GLG Legal to discuss the trust structure, the issues involved and the available resolution pathways.
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A breach of trust may occur when a trustee fails to comply with the trust deed or their legal and equitable duties. This can include misusing trust property, acting outside the trustee’s powers, failing to account for assets, making an unauthorised profit or acting under an unmanaged conflict of interest.
Whether particular conduct amounts to a breach depends on the trust terms, the trustee’s powers and the surrounding circumstances.
A beneficiary may be able to bring proceedings where there is evidence that a trustee has breached a duty, acted beyond their powers or failed to administer the trust properly.
The beneficiary’s rights and the remedies available will depend on the nature of their interest, the trust deed, the alleged conduct and the loss or risk involved.
A beneficiary cannot necessarily challenge a decision simply because they disagree with it. However, legal action may be available where a trustee has acted in bad faith, used a power for an improper purpose, failed to give genuine consideration to the decision or acted outside the terms of the trust.
A beneficiary may be entitled to request certain documents or information concerning the trust and its administration. The extent of that entitlement depends on the type of trust, the beneficiary’s interest, the document requested and the circumstances of the matter.
Legal advice can clarify whether information should be provided and how a trustee should respond to a request.
A trustee may be removed under the terms of the trust deed or by a court order. The process and grounds will depend on the trust documents, applicable law and whether the trustee can continue to administer the trust properly.
Removal is a significant remedy and is not automatically available merely because the parties have a difficult relationship.
Yes. Many trust disputes can be addressed through document disclosure, negotiation, mediation or another dispute resolution process.
Court proceedings may still be required where assets are at risk, a party will not cooperate or the dispute requires a binding determination.
The appropriate court depends on the jurisdiction, the relief sought and the circumstances of the claim. Applications involving the administration of a trust, equitable claims or the removal of a trustee may be brought in a state or territory Supreme Court.
Our lawyers can advise on the appropriate forum and the procedural requirements for bringing or defending the claim.
Responsibility for legal costs depends on how the dispute is conducted, the outcome and any orders made by the court. A trustee is not automatically entitled to use trust assets to fund litigation, particularly where the dispute concerns the trustee’s personal conduct or interests.
Trustees and beneficiaries should obtain advice about potential cost exposure before commencing or defending proceedings.
Limitation periods can vary according to the nature of the breach, the remedy sought and the circumstances in which the conduct was discovered. Different considerations may apply to allegations involving fraud, concealed conduct or the recovery of trust property.
Delay may affect the evidence and remedies available, so legal advice should be obtained promptly.
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