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Removing a trustee?

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Hi
i am the beneficiary of a will trust.  I had a previous thread, but thought it easier to start a new one for another question.  Previous thread for anyone interested: https://forums.moneysavingexpert.com/discussion/5877638/trust-questions#latest

My sister and I were left 1/6 each of a house in trust.  The owner of the rest is my mums partner.  He is also one of the trustees. 
My sisters part of will trust has been settled as the other trustee bought her share.    He did this as main owner of the house, not as trustee.  It has been confirmed by a solicitor that this was legal and his right to buy / my sisters right to sell.  The main owner / trustee has agreed to a sum to settle me and buy the remaining share (we agreed a figure 12 months ago).  My aunt has gone to another solicitor and attempted to charge it to the trust (which would only affect my share).  She has already asked the questions to a previous solicitor.  My aunt is refusing to sign the TR1 and take her name of the deeds for the house. Until my aunt confirms she will sign the TR1 the other trustees / owners solicitor won’t allow him to pay me. This has dragged on for a year now and gotten to the point she isn’t talking to me and hasn’t for 6 months.  

Her new solicitor has had a response from the first solicitor (12 weeks ago) confirming the transaction between my sister and the main house owner is legal. But still we are no further forward. 

i am wondering if I can remove my aunt as trustee under section 19 of land And appointment of trustees act 1996?  The will trust makes no provision for replacing a trustee and no mention of section 19. Also as my sister is settled, would she still have to agree with me to remove my aunt? Removing her on the basis that the owner / trustee and I have agreed an amount a year ago, but my aunt is holding up the trust because she refuses to sign.  Her ‘concerns’ over the legality of it all have been answered, yet she still refuses to sign.  She is also no longer talking to me and her relationship with the other trustee has been unworkable for more than 10 years.  

Quote:
s.36 Trustee Act 1925   Being ‘unfit’ depends on the circumstances of the case. Generally, a person who has been made bankrupt or convicted of a fraudulent offence will most likely be deemed to be unfit to act; as will a trustee guilty of a significant breach of trust or of acting in a way which causes a conflict between their personal position and their duty to the beneficiaries, known as their ‘fiduciary duty’. Even if a trustee is removed under s.36 Trustee Act 1925, it is entirely possible that they could challenge such a decision by way of court action.  

“(1) This section applies in the case of a trust where—

(a) there is no person nominated for the purpose of appointing new trustees by the instrument, if any, creating the trust, and

(b) the beneficiaries under the trust are of full age and capacity and (taken together) are absolutely entitled to the property subject to the trust.

(2) The beneficiaries may give a direction or directions of either or both of the following descriptions—

(a) a written direction to a trustee or trustees to retire from the trust, and

(b) a written direction to the trustees or trustee for the time being (or, if there are none, to the personal representative of the last person who was a trustee) to appoint by writing to be a trustee or trustees the person or persons specified in the direction.” (emphases added)

Whilst at first glance this seems like a useful provision, there are a few stipulations which make it a little more difficult in practice to invoke than perhaps first envisaged.

Firstly, this power is only available where either the trust instrument does not provide for anyone to appoint new trustees or where s.19 Trusts of Land and Appointment of Trustees Act 1996 has not been specifically excluded in the trust instrument.

Secondly, it requires unanimity amongst the beneficiaries who must all be over 18, of sound mind and, together, absolutely entitled to the trust fund. As such, if there is one dissenting beneficiary or a beneficiary who lacks capacity or is under 18, the beneficiaries cannot take advantage of this section.‘

I really want to do this myself as I can’t afford legal expenses and my inheritance would be really useful at the moment.  Any help would be greatly appreciated!  Many thanks in advance!

  

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Not sure you need to.
    You can sell your benefitial interest without changing the legal owners of the property, all properties with more than one legal owner are held as a trust for the benefitial owners(often the same people) 

    They pay you and they now own your benefitial interest.
    (AIUI needs to be done by  deed but that is standard) 
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