How to sue a trustee for negligence in the UK?

Have you ever felt that the trustee is not fulfilling their legal responsibilities? Whether managing a private trust or a charity, a trustee plays a central role in carrying out the wishes of the testator and complying with the law. But what happens when the trustee fails in their duties? In cases of negligence or misconduct, it may be to take legal action or even pursue trustee removal necessary to seek their removal. navigate this complex process, consulting a solicitor specialising in trust disputes and trustee litigation.

If you believe you have grounds to act, keep reading for a clearer look at the legal process—and when to involve a solicitor for trusted trust disputes legal advice.

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Trustee: Their roles and responsibilities?

A trustee is an individual or organisation appointed to manage the assets of a trust, will, or charity in line with the terms set by the creator, also known as the settlor or testator. The trustee holds a legal duty of care to act in the best interests of the beneficiaries, make informed decisions, and remain accountable at all times. This includes managing investments, distributing funds, maintaining accurate records, and communicating transparently.

When to sue a trustee for negligence?

There are several reasons why beneficiaries or co-trustees may consider suing or removing a trustee. Whether due to negligence, misconduct, or breach of duty, these failures can damage the trust and those it’s meant to protect:

1. Failure to meet legal obligations: A trustee is bound by fiduciary duties, – acting with honesty, diligence, transparency, and impartiality. If these duties are ignored, it may justify removal or legal action for a trustee breach..
2. Mismanagement of assets: Poor investment choices, financial carelessness, or failure to maintain the value of trust property can result in loss to the beneficiaries and trigger trust disputes.
3. Conflict of interest: If a trustee is perceived to be acting in their own interest rather than in the interests of the trust or its beneficiaries, this can amount to a breach of loyalty and form a basis for litigation.
4. Illegal or fraudulent behaviour: If the trustee is accused of fraud, embezzlement, or other criminal conduct, urgent legal intervention to protect assets and ensure accountability is necessary.

What happens if a trustee fails in their duties?

When a trustee doesn’t carry out their responsibilities properly, the effects can be serious, for the beneficiaries, the trust, and the trustee themselves. The impact may include:

• Financial loss to the trust: Mismanagement or inaction may lead to poor investment performance, tax penalties, or loss of key assets, often triggering trust disputes.
• Delayed or incorrect distributions: Beneficiaries may not receive what they’re entitled to, or may receive it late, due to lack of planning or failure to follow the trust deed.
• Loss of beneficiary trust: Failure to communicate or act impartially often results in escalating trust disputes, especially when beneficiaries feel excluded or misled.
• Legal consequences: A trustee who commits a trustee breach, demonstrates gross negligence, or engages in trustee fraud may face court action, personal liability, or trustee litigation.
• Damage to reputation and future roles: A trustee found at fault can lose compensation, be barred from acting again, and suffer lasting reputational damage, particularly in regulated or offshore trust disputes.

How to file a complaint against a trustee?

Suing a trustee for negligence requires a clear process and solid evidence. If you’re considering action for trustee negligence or a trustee breach, these are the key steps to follow:

1. Examine the grounds for action: It is crucial to have credible evidence of the trustee’s negligence, mismanagement, or failure to meet fiduciary duties. This could include financial records, missed distributions, or communication breakdowns affecting the beneficiaries.
2. Submit a petition for removal: A formal petition must be filed with the elevant court. it should detail the allegations, include supporting documentation, and explain why the trustee is no longer fit to serve.
3. Attend a court hearing: If the court accepts the petition, both parties will present their case. The trustee can respond to the allegations and provide their own evidence or defence.
4. Await the court’s decision: After reviewing the facts, the court will decide whether trustee removal is justified. If upheld, the trustee may be replaced, and, if losses occurred, compensation could be ordered.

How much does it cost to remove a trustee in the UK?

Removing a trustee can be costly, depending on the complexity of the case, , and whether the matter can be settled amicably or requires full litigation.

The main costs to consider are:

1. Legal fees: The largest cost is usually your solicitor. Rates vary based on experience and case complexity. A specialist in trust disputes or trustee litigation will be essential if the case is contested..
2. Court fees: Filing a petition for removal and attending hearings comes with court costs, which increase if the case proceeds to trial..
3. Expert costs: n complex claims—such as those involving financial loss, trustee fraud, or disputed valuations—expert witnesses (e.g. accountants or asset managers) may be needed to support your claim.

FAQs

• Can a trustee be personally liable for losses? If a trustee breach or trustee negligence results in financial loss, the trustee may be held personally liable to repay the trust or the beneficiaries.
• What if the trustee is based overseas? Cross-border cases, especially offshore trust disputes, can be more complex. You’ll need a solicitor with experience in international trust litigation to navigate different legal systems and asset locations.
• Can beneficiaries replace a trustee with someone of their choice? Not automatically. Beneficiaries can apply for trustee removal, but the court decides whether to appoint a new trustee—and who that should be—based on what’s best for the trust.

Managing a trust or charity carries serious legal responsibilities. When a trustee acts with negligence, fails to fulfil their duties, or breaches the trust placed in them, the consequences can affect every beneficiary involved. These situations should never be ignored.

Need help removing a negligent trustee?

Get expert guidance from a solicitor who specialises in trust disputes and trustee litigation. Through Qredible’s network of vetted solicitors, you can find trusted legal professionals with the experience to protect your rights and resolve your matter efficiently.

KEY TAKEAWAYS

• A trustee can be removed for negligence, breach of duty, conflict of interest, or actions that go against the trust’s purpose.
• Removal can result in reputational damage, personal liability, and loss of compensation for the trustee.
• The process involves gathering evidence, filing a formal petition, and navigating the legal system.
• Working with a solicitor ensures the case is properly handled, the beneficiaries’ interests are protected, and costly mistakes are avoided.