Beneficiary to a trust - what information are you entitled to?

When a beneficiary has concerns regarding the actions of a trustee it is important they understand what information they are entitled to so they can consider their position fully.

Trustees have a duty to administer the trust in line with their legal duties and those set out in the specific trust document. Whilst it may be frustrating for concerned beneficiaries, disclosure of trust documents is at the trustees’ discretion. That said, trustees do have a duty to account to beneficiaries and should deal with any requests for documentation reasonably. It is generally accepted that it is reasonable for a beneficiary to request sight of and for trustees to provide;

• The trust deed – whether set out in a will or otherwise
• Documents confirming the appointment of trustees
• Confirmation of the trust’s assets

Trustees do not have to provide documents relating to their decision making process. In the context of a dispute the courts do encourage parties to exchange documents and any unreasonable refusal to do so could have cost consequences for a trustee if the court later considers it was unreasonable for them to refuse.

As a trustee, any request for documents should be dealt with reasonably considering the circumstances and what is in the best interest of all the beneficiaries. Where a decision is not straight forward trustees can also seek direction from the court.

If you are a beneficiary looking to obtain trust documentation or a trustee facing a request to provide documents, please get in touch for assistance.