By Tony Johnson - 5 Sep 2013
The High Court recently removed a beneficiary's stepmother and
solicitor as trustees of a trust. The removal was on the
grounds that they failed to act impartially and/or failed to take
into account the interest of all the beneficiaries. The recent
High Court decision of Thurston v Thurston reaffirms the
requirement of trustees to act impartially and in the interest of
all beneficiaries.
The Court determined that the stepmother particularly had
difficulty distinguishing between her role personally as a
beneficiary and her role as a trustee.
In respect to the solicitor, the Court's view was that because
of his close link to the stepmother, it was difficult for him to
act impartially and he had not done so.
The decision again illustrates the benefit of a truly
independent trustee. This is especially the situation when
other trustees are also beneficiaries. It also illustrates the
risks for professionals who take on trustee work whilst at the same
time being aligned to a particular beneficiary.
Links:
Thurston v Thurston
Contact:
Tony
Johnson