Contentious Trusts - Farrer & Co

Contentious Trusts & Estates

Our approach…
Multi disciplined
Trust and Estate disputes inevitably
cross a number of disciplines - private
client, family, charity and disputes.
Farrer & Co is widely recognised for its
strength in each of these areas.
Leading individuals from these areas
make up our Contentious Trusts &
Estates group. We ensure that clients
receive a seamless service.
Dispute avoidance
We are involved in planning to mitigate
the risk of disputes arising in the first
place, by suitable drafting, and by
careful and practical advice tailored to
meet the attendant risks.
Dispute handling
Sometimes, regrettably, disputes
cannot be avoided. We have
considerable experience of guiding our
clients through all stages of court
proceedings ranging from “friendly”
applications to vary the terms of the
trust or to give trustees directions on a
construction issue or as to the
appropriate course of action, through
to hostile claims, where we usually act
for the settlor (or members of his
family) and the trustee. We have
handled both “internal” claims (such
as for breach of trust by a beneficiary)
and “external” claims (such as from a
creditor, former spouse or heir of the
settlor attacking the validity of the
trust).
Family assets held in trust frequently
become the subject of attention in
divorce proceedings. A spouse may
seek financial provision from the trust
or try to vary its terms. These raise
complex issues for both spouses and
trustees. We have extensive
experience advising spouses and
trustees before the Family courts in
such situations.
Sensitive handling
Whatever their cause, such disputes
often involve members of the same
family, and affect minors and unborns.
They are likely to be painful for all
concerned and require careful and
sensitive handling which ensures the
situation does not escalate. We aim to
defuse conflicts at an early stage by
finding practical solutions outside the
court arena. Farrer & Co is a founder
member of CEDR and we are actively
involved with the STEP Mediation
Group. We make full and appropriate
use of mediation, promote the
ACTAPS pre action protocol wherever
possible, and have considerable
experience of resolving disputes at an
early stage through use of mediation.

services…
“I can count on Farrer & Co to look beyond the
facts. They work closely with us, applying a
practical and common sense approach to the
resolution of disputes; which empathises with
our business and its needs.”
Senior Manager, Coutts & Co
International
Our work frequently involves
international elements. We have a
history of working with clients and
intermediaries in other parts of the
world. We have extensive experience
of proceedings outside England and
Wales. For example, we are currently
involved in cases before courts in
Bermuda, Cayman Islands,
The Bahamas, Turks & Caicos Islands,
Geneva, Cyprus, Singapore, BVI and
Texas. Heavy duty litigation can strain
the resources of even the largest
offshore firms. We have experience of
providing assistance to offshore firms
in such cases.
Our clients
We act for high net worth families,
settlors, trustees, protectors,
beneficiaries, lawyers and other
intermediaries from around the world.
We pride ourselves on our close,
enduring relationships. We are
committed to getting to know our
clients, to understanding their
requirements and objectives. We strive
to meet them in a timely manner.
We understand the importance of cost
pressures, and seek to deliver cost
effective solutions.
Confidentiality
Confidentiality and discretion are of
the utmost importance to us.
Our clients have long benefited from
the highest standards of privacy,
sensitivity and discretion.
Contested estates
We are experienced with contested
estates, in this country or abroad.
We act for charities, legacy officers,
executors, beneficiaries and
disappointed heirs in probate
disputes, forced heirship claims and
applications under Inheritance
(Provision for Family and Dependents)
Act 1975.

& expertise
“Regrettably, trust disputes have become a fact of
offshore life. They need to be handled sensitively,
by suitable experts. Farrer & Co have the depth
and range of expertise, especially in international
work. They are adept at finding practical,
common sense and cost effective solutions.”
Royal Bank of Canada
It should be borne in mind that most
disputes settle, and therefore do not
feature in the law reports. However,
the following are just some examples
of the reported cases we have been
involved with in recent years:
Omar v Omar [1999] All ER 560.
Action by administrators of a substantial
estate to locate and recover estate
assets, involving action in various
jurisdictions.
Goodman v Goodman [2006] EWHC
1757 (Ch). Rectification of will, resulting
from misunderstanding of testator’s
instructions.
Taylor v Midland Bank Trust Company
[2002] WTLR 95. Beneficiary claiming
breach of trust against trustees.
Gomez v Gomez Monches-Vives [2008]
EWCA Civ 1065. Article 5(6) of
Judgments Regulation.
Close Trustees (Switzerland) v Vildasola
[2008] EWHC 1267.
Directions application.
Wingate v Butterfield Trust (Bermuda)
Ltd [2008] WTLR 357. Disclosure to
beneficiaries.
Brown v Executors of Estate of Her
Majesty Queen Elizabeth The Queen
Mother.
Frances v Al Assad [2007] EWHC.
Freezing order against beneficiary of
discretionary trust.
Frey v Royal Bank of Scotland
(Nassau) Limited [2001] 3 ITELR 775.
Construction of trust governed by
Bahamas law before Supreme Court of
The Bahamas.
Aroso v Coutts & Co [2001] EWHC
Ch 443. Concerned ownership of funds
in joint account following death of one
of the account holders.
Alhamrani v Russa Management
Limited and others (Re Intertraders):
Dispute over large Shari’a inheritance,
transferred to Jersey trustees.
Heavyweight proceeding before the
Royal Court in Jersey.
“Farrer & Co have helped in high value trust litigation
before the Jersey courts. This involved complex Shari'a,
Jersey and English elements and has resulted in some
ground breaking decisions. We were impressed by
Farrer & Co’s understanding of complex trust issues and
their practical cost effective approach.”
Senior partner, of Viberts, instructing Advocates in Alhamrani v Russa
Management Limited and Others

“The same specialist skills used to resolve
contentious trust disputes are increasingly
in demand by professional trustees, to deal
with the restructuring of complex family
trusts. This is particularly the case where
families have connections with multiple
jurisdictions. Farrer & Co offer an impressive
team that has the necessary strength in
depth to analyse the multi-jurisdictional
issues and to draw together their
conclusions in clear, practical advice.”
Richard Williams, Investec Trust
“No trust company should feel immune
today, as there is real danger in the
trustees getting dragged into a family
dispute or other matters even if they have
acted impeccably! Farrer & Co have
demonstrated real expertise in trust
matters and related disputes, particularly
with an international dimension. They are a
pleasure to work with and good at finding
practical and cost effective solutions.”
Daniel Martineau, MD, Close Bros, Geneva
“The Contentious Trusts & Estates group are
able to offer both technical excellence and
a direct and practical approach when
advising on the law.”
Aarti Puri, MENCAP

Providing seamless and integrated legal advice across
a wide range of practice areas and sectors, including:
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Farrer & Co LLP
66 Lincoln’s Inn Fields London WC2A 3LH
Telephone +44 (0)20 3375 7000 Facsimile +44 (0)20 3375 7001
Website www.farrer.co.uk Email enquiries@farrer.co.uk