Beneficiaries 'salivating' at challenging trusts
Out dated structures of trust funds set up two generations ago, and a greater sense of entitlement was leading to an increasing number of trust disputes, according to Paxton-Hall Lawyers.
The law firm, which specialises in wills and estates, said listed beneficiaries, were "salivating" at the chance of challenging and demanding more from estates, some of which were set up 80 years ago.
Special counsel, Sharon Winn, said some of these trusts that were set up decades ago would have accumulated a fair amount of money.
"Over the years attitudes towards money and entitlement has shifted and people now have the necessary awareness, and means, to challenge cases like this to ensure they receive the maximum amount rather than accepting or being content with less for the good of the wider family," Winn said.
Winn said the outmoded structures and a greater sense of entitlement were a dangerous combination.
"Often there is a difference in opinion between the generations about how trusts were intended to be used within the family, who within the family is intended to control and benefit from the trust, and ultimately when and how control should pass to the next generation," Winn said.
The older generation should properly structure wills, deeds of family arrangement and lifetime gifting to ensure control of the trust is passed on to those they desire with minimum counter-claims.
Winn cited the high profile case of late billionaire, Michael Wright, and his estranged daughter, Olivia Mead. Mead was entitled to $3 million, but she successfully challenged the trust to win $25 million as an absolute gift.
AUTHOR
Malavika Santhebennur
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