Case study - removing a trustee

Our client approached us initially to retrieve a property deed. What seemed like a straightforward request soon revealed a more complex issue: the property had been placed into a trust several years earlier by another firm, and the former partners of that firm were personally named as trustees.

Our client wanted to downsize their mother’s property after the passing of their father, but they faced a significant obstacle. The trustees were found to be acting inappropriately, and under normal circumstances, formally retiring or replacing trustees could have required lengthy and costly legal processes.

Upon reviewing the trust deed, we identified a critical clause: the settlor’s power to remove trustees. This provision acts as a protective mechanism, allowing for the removal of trustees without needing to pursue a court order. By leveraging this clause, we were able to guide our client through the removal process efficiently and prevent unnecessary delays.

Because of our intervention, our client avoided the potential costs and complications of a court application. If they had delayed retrieval of the deed or waited until after their mother’s passing, the situation could have escalated significantly, resulting in protracted legal proceedings.

This case highlights the importance of regularly reviewing trust arrangements and trustees. Doing so can prevent future complications, protect your assets, and save considerable time and expense.