Trustee Removal

Riteboot

Hi all,

First post and all !

I'm a Trustee for a trust fund that my parents set up a few years ago. They have placed their property within the fund and were told that this would mean beneficiaries would avoid probate when they die and that, should they need to go into paid care, the property could not be used to pay for said care.

Out of the blue, they have asked me to resign as trustee. I'm a little confused as to why, but think it might be due to a new relationship they disapprove of (they are now not talking to me).

I've had a solicitors letters asking me to resign and threatening legal action if I don't. The solicitors inform me that the costs of any court action will land upon my door also.

So, my two questions are:

1) Should I resign even though I still plan to act in the best interests of the trust?

2) Why don't my parents just remove me if, as the people who set the trust up, they feel that strongly? Does it need court for them to force me?

Thanks in advance

Credit-Crunched

Riteboot wrote: »

Hi all,

First post and all !

I'm a Trustee for a trust fund that my parents set up a few years ago. They have placed their property within the fund and were told that this would mean beneficiaries would avoid probate when they die and that, should they need to go into paid care, the property could not be used to pay for said care.

Out of the blue, they have asked me to resign as trustee. I'm a little confused as to why, but think it might be due to a new relationship they disapprove of (they are now not talking to me).

I've had a solicitors letters asking me to resign and threatening legal action if I don't. The solicitors inform me that the costs of any court action will land upon my door also.

So, my two questions are:

1) Should I resign even though I still plan to act in the best interests of the trust?

2) Why don't my parents just remove me if, as the people who set the trust up, they feel that strongly? Does it need court for them to force me?

Thanks in advance

Can you provide some further information please.

Do you know the settlors (i Assume its your parents) any other trustees, and are you also a beneficiary ( I assume you are, hence your parents concern over your new relationship) If that proceeds to marriage, then she will be entitled to your benefits as a beneficiary.

Also is it an absolute or discretionary trust

Riteboot

Hi CC.

Yes, settlors are parents. My brother is the other trustee and we are both beneficiaries too.

I'm afraid that's all I know. I'm not sure what kind of trust it is or even how I'd find out.

Credit-Crunched

Trustee Act 1925 - Section 36

http://www.legislation.gov.uk/ukpga/Geo5/15-16/19/section/36

Generally there needs to be a valid reason for a court to insist on removal from your duty as a trustee, usually an indication of wrong doing, or your in abilty to act as a trustee (leaving the country fro 12 months or more, ill health etc)

Credit-Crunched

Riteboot wrote: »

Hi CC.

Yes, settlors are parents. My brother is the other trustee and we are both beneficiaries too.

I'm afraid that's all I know. I'm not sure what kind of trust it is or even how I'd find out.

So that would leave your brother as the sole trustee? Again really nor recommended.

I would speak to your brother and see if he can speak to your parents to ask why.

Always best to try mediation outside of legal actions, if they insist on pursuing, then you may need to consider this course of action.

I assume it is an asset protection trust

Riteboot

So, would everyday family arguments/disagreements be perceived by the court as wrong doing? We've had a few heated exchanges (verbal and email) ?? (although I didn't expect it to come to this)

Credit-Crunched

Riteboot wrote: »

So, would everyday family arguments/disagreements be perceived by the court as wrong doing? We've had a few heated exchanges (verbal and email) ?? (although I didn't expect it to come to this)

Not generally, it would usually be somthing like funding a proceed of crime..

atush

So, they put their house in trust so they would not have to sell it to provide for care?

Are they paying rent to the trust? do they have other assets to pay for care? Surely you dont want them to live in a care home the council would pay all of?

have you married the partner who is not acceptible to your family? If not, just dont marry them?

xylophone

http://www.telegraph.co.uk/finance/personalfinance/insurance/longtermcare/10117822/Warning-over-care-home-trust-schemes-that-promise-to-protect-your-property.html

http://www.expertwillwriter.com/care-home-fees.html

This sounds like a Family Protection Trust?

The above might be of interest.

You can choose to resign from the Trust - if you became incapacitated by age or mental or physical infirmity or were unable to carry out your duties the other Trustees could take the decision to remove you but otherwise, as I understand it, a court order would be required.

Where the Trust is settlor interested, and that settlor is a Trustee, he or she may resign but can only be removed by court order, even if mentally incapacitated?