Discretionary trusts – obtaining information and documentation

Discretionary trusts remain a widely used and flexible tool for asset protection, control and tax planning, and their use is expected to increase in light of recent fiscal developments. However, their practical operation often gives rise to uncertainty and disputes, particularly around the rights of beneficiaries and the duties of trustees in relation to information and disclosure.

This webinar provides a practical overview of the key legal principles and common areas of contention, equipping practitioners with the knowledge to draft and administer discretionary trusts more effectively, advise trustees and beneficiaries with confidence, and navigate requests for information while minimising the risk of disputes and protecting their clients’ positions.

Topics covered include:

• Discretionary trusts: key terms and features
• Trustees: duties and responsibilities
• Law when requesting information and documentation
  • Information trustees must disclose to beneficiaries
  • Schmidt v Rosewood Trust Ltd (Isle of Man) [2003] UKPC 26
• Requests for information by beneficiaries:
  • Trust documents
  • Trust accounts
  • Letters of wishes
  • Documents showing reasons for trustees’ decisions
  • Legal advice obtained by trustees
• Trustees’ refusal to disclose information
  • Applications under Public Trustee v Cooper [1999] All ER (D) 1524
  • Beddoes orders
  • Confidentiality orders
• Procedure to request and obtain information from trustees
  • Court applications:
    • Determination of question arising in the execution of a trust
    • Directions
    • Account and/or inventory
    • Pre-action disclosure
    • Third party disclosure
• Other considerations
  • Disclosure where potential claim arising under the Inheritance (Provision for Family and Dependants) Act 1975
  • Disclosure to a beneficiary as a litigant
  • Disclosure on a beneficiary’s divorce
  • Disclosure under data protection legislation
  • Disclosure under legal privilege
• Claims against professional advisors
  • Larke v Nugus requests
  • Professional negligence