Be Careful Who You Trust

Estate planning often involves the use of testamentary trusts for purposes such as gifting to minors and gifting to adult dependants with a disability. In some cases, clients request a testamentary trust for adult beneficiaries for other reasons. The use of testamentary trusts is certainly necessary in some situations, but trusts can also have a restricting effect on beneficiaries and cause disputes between family members left behind.

A recent decision of the Court of King's Bench is a good example of the restrictive nature of a testamentary trust and the resulting dispute between surviving family. In Armstrong v Lee Grant, 2023 SKKB 111, the Court was asked to remove a trustee named in the testamentary trust or vesting the trust property in the named beneficiary. The trust at issue was a testamentary trust for the benefit of the deceased's widow, with a gift over to the deceased's minor daughter.