Can someone please clarify, where there is a bare trust with an adult beneficiary, do the trustees have a duty to inform the beneficiary of its existence?
I know the beneficiary is legally entitled to the proceeds at age 18 whereby they could demand a distribution, but if they were not aware of the trust, until say age 25, could they then make a legal claim that they should have had access to it sooner?
Francesca Gandolfi
Canada Life
Definitely yes, both questions.
Tim Gibbons
Yes, they have a duty to inform an adult beneficiary.
Failure to do so would be a breach of trust. There would be an obvious claim for the assets but the nature of any other claim would depend on the circumstances and whether any loss flows from the breach. If no loss (of any kind), there is unlikely to be any further claim.
Andrew Goodman
Osborne Clarke LLP
The simple answer is yes-he is entitled at 18 and should be accounted to then by the trustees.
Simon Northcott