Last Updated on 22nd February 2025
Discretionary trust claim victory for son who received nothing under the trust in his late mother’s will.
This is a case summary of a discretionary trust claim that we won on behalf of our client. If you find yourself in a similar position and requiring expert guidance on making a discretionary trust claim then contact our recommended solicitors for a free consultation. Call 0333 888 0407 or email us at [email protected].
Mr W, our client, was the son of Mrs W who had died. Mr W was one of three children. He had a sister (M) and a brother (R). Mrs W had fallen out with R prior to making her Will. She executed the Will (with the help of M’s husband A) and in it she gifted £20,000 to M with the remainder of her estate being written into trust. M and A were named as the executors and trustees with absolute discretion as to who should receive anything from her estate. This is known as a discretionary trust.
Whilst our client was named as one of the possible beneficiaries of the trust, there were a number of other beneficiaries – including 14 grandchildren and great grandchildren. The beneficiaries weren’t limited to people living at the time of Mrs W’s death, but also future descendants of her children. It was a confusing and uncertain trust under which Mr W had no means of ensuring that he got his fair share of his mother’s estate.
Initial conversations between our client and M suggested that the trustees would give him an equal share of the residue, so long as their mother’s wishes for R not to benefit was respected. However, it soon became apparent that M and A were not in fact willing to make any provision for our client, so he sought legal advice from our specialist team.
Our advice on making an Inheritance Act claim
On our advice, Mr W pursued a claim against his mother’s estate under the Inheritance (Provision for Family & Dependants) Act 1975. He relied upon the following factors in support of his claim:-
- his financial need for provision (particularly his need for housing as he had sold his home in England with a view to using the inheritance he had been promised by his mother to renovate a run-down property in France. Without an inheritance he would remain living in a caravan;
- the remaining beneficiaries’ lesser need for provision- in particular the fact that M and A were reasonably well of in their own right due to A’s job. The remaining beneficiaries had no actual right to an inheritance from the trust only a right to be considered and so their need could not be as great;
- the estate was of a sufficient size to make provision for him; and
- his mother’s conduct in promising him an inheritance which he relied upon when selling his English property and buying a run-down property in France, gave rise to an obligation to provide for him with a defined inheritance on her death.
Settlement of the claim
Although it was necessary to commence court proceedings, it was agreed that those proceedings should be put on hold to enable negotiations to take place. This was difficult with seventeen defendants. Some were minors, and others didn’t even respond to correspondence.
Terms of settlement were eventually reached with the executors’ solicitors whereby our client received a substantial lump sum, plus his legal costs. The Court approved the settlement and costs were agreed with the estate, allowing our client to receive his inheritance and follow his planned dream of renovating his property in France.
How we can help if you have lost out due to a discretionary trust
It is not uncommon for people making a Will to leave the decision making to their executors/trustees, instead of deciding who to leave their estate to themselves. However, these discretionary trusts can create divisions and disputes within families if not properly thought through, as was the case with our client Mr W.
While trustees have obligations to exercise their duties fairly, they can withhold an inheritance from a beneficiary who they don’t want to benefit. This is where the Inheritance Act can sometimes help, and Mr W’s case is a good example of how such claims can often be resolved by way of an “out-of-court” settlement, without the necessity of an expensive contested trial.
If you have lost out due to a discretionary trust and would like to know if you can pursue a claim then call us now for a a free consultation on 0333 888 0407, or send us an email.