Equalisation of early benefit from trust

My client is one of four remainderman beneficiaries of a life interest Trust. During the life of the life tenant she was allowed to purchase a trust asset. Issue being she never actually paid for it. 50years later the trust is due to be wound up. There is a dispute now with the other beneficiaries as to how her early benefit should be accounted for, opinions ranging from it being statue barred for there to be any account, to she should pay to the trust the original agreed asking price with compound interest, to the other beneficiaries should each have a first charge on the trust for the equivalent of what the value of her asset is now. Would appreciate any thoughts.

If the life tenant entered into an agreement to buy the trust assert, I would see that as a contractual issue, and they/their estate should be held to the terms of the contract (in whatever form that “contract” tales).

However, as a separate issue, why did the trustees not enforce the contract? Unless there is a specific provision I the trust instrument relieving the trustees of liability I these circumstances, I suggest the beneficiaries may now look to the trustees to recompense them for any loss arising to the trust by the failure to enforce the contract in a timely manner.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Sorry my poor drafting. It was my client as a remainderman beneficiary who “bought” one of the assets from the trust but didn’t pay for it at the time. The life tenant was aware and in agreement. All the trustees at that time have since passed away and I have no idea why my client was never asked for the money. the current trustees are my client and two of the other remaindermen beneficiaries. The issue is how, or even if we should, account for my client receiving a benefit 50 years ago but not paying for it at the time.