SALE OF TRUST SHARES

I’m an administrator & Trustee on behalf of a family who have asked me to look into a Share Sale.
Deceased owned 37.5 % Shares in a Company which he founded. 2nd Wife also owned 37.5 % Remaining 25% owned by a relative of the Wife.
Deceased requested that a discretionary trust be set up leaving his 37.5 % to his adult children from Wife 1.
Solicitors for deceased did not transfer the Shares into the Children’s names, however the Shares were valued & included in their IHT calculations.
Probate was then obtained. Immediately after,
Wife 2 sold her 35% + Deceased 35% to her relative. Company now owned 100 % by relative.
No Shareholder agreement in place & no drag & tag rights.
Wife 2 is an Exec. Same relative just applied to OPG to gain POA over Wife.
Can the Children make a case ?

On the basis of the information provided, it seems that wife 2 has acted inappropriately and the children of wife 1 may have a justifiable claim.

However, the positon might not be as straightforward as suggested and is the sort of situation where the advice of Chancery counsel should be obtained.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals