Ten years ago, a settlor created a trust over the sum of £500,000 for “my wife and my children in equal shares”. The trustees were two solicitors in the settlor’s law firm.
Eight years ago the trustees agreed, at the request of the wife (but not the children), to use the capital sum of £65,000 from the trust to help her fund some improvements to the marital home. At the time, the two adult children lived in their own homes.
Upon seeing copies of the trust accounts, the children are unhappy with the fact that they were not consulted about the use of the capital sum of £65,000.
Can the children bring a claim against the trustees?

Question

Ten years ago, a settlor created a trust over the sum of £500,000 for  “my wife and my children in equal shares”.  The trustees were two solicitors in the settlor’s law firm. 
 Eight years ago the trustees agreed, at the request of the wife (but not the children), to use the capital sum of £65,000 from the trust to help her fund some improvements to the marital home. At the time, the two adult children lived in their own homes. 
 Upon seeing copies of the trust accounts, the children are unhappy with the fact that they were not consulted about the use of the capital sum of £65,000. 
 Can the children bring a claim against the trustees?

Answer

No, because the trustees were permitted to take whatever action they considered reasonable.

Answer

No, because while the trustees did act in breach of trust, the children cannot be angry that their mother needed the family home improved.

Answer

Yes, because the trustees had acted fraudulently.

Answer

Yes, because the trustees had acted in breach of trust by not obtaining the consent of the children.

Answer

No, because the trustees did not act in breach of trust in using the capital sum of £65,000.

Crowdly

Ten years ago, a settlor created a trust over the sum of £500,000 for “my wife ...

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