Fight Or Flight?

ABSTRACT

Events leading to hostility between trustees and beneficiaries are often similar. The following is a typical situation:

• The settlor places their fortune in a discretionary trust for the benefit of their children, grandchildren and further issue. They make it clear in their letter of wishes that they do not wish the trustees to fund extravagant lifestyles for the children.
• The settlor dies and their children bring pressure on the trustees to make substantial distributions to them. The trustees refuse.
• The children turn against the trustees and allege overpayment by the trustees of their costs. The children only agree to correspond with the trustees via their solicitors. The children's solicitors request the trustees stand down in favour of the children on the grounds that they may be in breach of trust through overcharging and that, in any event, there is such friction and hostility between the trustees and the children that the trusts cannot be