Trusts Act 2019: Review of trustees’ decisions by High Court

The Trusts Act will give beneficiaries the ability to apply to the High Court to review:

• the removal or appointment of a trustee; or

• any act, omission or decision of the trustees (including one which has not yet occurred but is proposed).

An application by a beneficiary will be dealt with in two stages:

• the beneficiary must first produce evidence that raises “a genuine and substantial dispute” as to whether the decision was or is reasonably open to trustees; and then

• if the court is satisfied that the beneficiary has established a genuine and substantial dispute, the onus is on the trustees to defend the decision.

If the court is satisfied that the decision was not or is not reasonably open to the trustee, the court may make any order the court considers necessary - for example, the court may set aside the decision. However, the court must not make an order that affects a valid distribution of the trust property that was made before the trustees had notice of the application or any right acquired by a person in good faith and for value.

We have published A trustee’s guide to the Trusts Act 2019 (Guide) – the above is an extract from the Guide. If you would like a full copy of the Guide, please get in contact with us.

Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.