What went wrong with the Property Trust
In 2021, a couple sought to update their Wills due to a family dispute. Instead of receiving new Wills, they were advised by a non-legally qualified “estate planner” to place their home into a trust. They were reassured—incorrectly—that they could remove the property from the trust later if the trustees agreed. Feeling confident in their choice of trustees, they proceeded.
The trust was created, and their home was transferred into it, with their grandchildren named as beneficiaries. In 2023, due to changing circumstances, they wanted to take the property back out. They were told this would require a family member’s consent, which they were reluctant to seek. Later, they were informed that even with consent, court approval was needed—and likely wouldn’t be granted. They were left unable to regain control of their own home.
How our Dispute Resolution Solicitors helped with a legal review and negligence claim
Our Wills, Trusts and Estates Disputes team reviewed the trust arrangement and identified serious concerns. We advised that the trust was neither necessary nor appropriate for their circumstances and that their goals could have been met through a properly drafted Will and Letter of Wishes. We highlighted that any challenge under the Inheritance Act would likely have failed, making the trust redundant.
We found the Declaration of Trust to be poorly drafted, lacking a key provision that would have allowed the property to be returned to the couple—despite this being a central concern they had raised. We advised that the trust may have been mis-sold and that there was a potential claim for professional negligence.
High Court Application and Outcome
We recommended a Court application to set aside the trust, based on the misunderstanding of the trust’s nature and effect. The application to the High Court was successful and the couple were able restore ownership of their property, while recovering their legal costs from original advisers.
However, this outcome is exceptional. In most cases, individuals are unable to recover such costs, and the legal process can be lengthy, expensive, and emotionally draining. Despite the positive result, the clients endured significant stress, time, and financial burden to rectify a situation that arose from relying on unregulated “expert advice”.
Avoiding Mis-Sold Property Trusts – legal advice tips
- Seek advice from a qualified solicitor: The couple were misled by someone without legal training. A regulated solicitor would have explained the long-term consequences of placing property into a trust.
- Use a Will to achieve your goals: Their intention to exclude a family member could have been achieved through a properly drafted Will.
- Get independent legal advice before signing: Trusts are complex and often irreversible. A second opinion could have prevented this costly and distressing situation.
Concerned about a trust arrangement or estate planning advice you’ve received?
Our experienced dispute resolution solicitors can help you assess whether your property trust was mis-sold and explore options to reclaim control of your property.
Contact us today for a fixed fee consultation and protect your future with regulated legal advice.
