I am based in the US and acting on behalf of three adult grandchildren who are the sole Residuary Beneficiaries (RBs) of the Estate of their Grandmother (GM) who passed away in November 2021. The GM was a UK citizen and resident in the UK. The RBs are dual UK/US citizens and resident in the US. The Estate consists of cash investments and the GM’s 50% share of the home which she co-owned, debt-free, with her long-term partner, John. John and the GM were not married and not in a civil partnership.
The GM’s Will passed all her cash investments, after deduction of testamentary expenses/IHT, to the RBs directly and created a Life Interest Trust (Trust) to enable John to live in the home. Should John choose to sell the home in the future, he has right of income from the GM’s share of the sale proceeds held in the Trust until his death. After John’s death, the money in the Trust passes to the RBs. The GM’s only child, the RBs’ father, is not a beneficiary of the Estate. The GM’s Will appointed John as the Lay Executor/Trustee and two Partners from the UK firm which drafted the Will as the Professional Executors/Trustees (PETs).
Currently, the Administration of the Estate is incomplete. The home is still registered with HMLR in joint names of John and the GM, the Trust created by the GM’s Will has not been registered with TRS, and no distributions have been made to the RBs. In November 2024, the RBs filed a complaint against the PETs as there had been no communication directly from them since the GM’s death and only sporadic updates on the Administration’s progress from John. Communication and information sharing commenced after receipt of the complaint and it was apparent no work had been performed on the Administration since early 2023. Furthermore, a close examination of estate, office, and firm accounts reveals the PETs have been keeping 4/5ths of the income received on the GM’s money held in their client account.
John has declined the opportunity to buy the RBs’ interest in the home and the GM’s 50% share will now be placed in the Trust. John, in consultation with the PETs, has asked them to resign once the Administration is complete. John has informed the RBs that the PETs’ role as Trustees will be taken by his two sons with a non-Trustee solicitor in support. The RBs’ request to appoint their father as a Trustee has been rejected due to his US residency. A similar request to appoint the RBs’ uncle, who is a UK citizen and UK resident, has also been rejected.
I will most likely be assisting the RBs to appoint a UK firm of solicitors to act on their behalf. However, I would be grateful for your insights and guidance on the following questions as part of my preparatory research:
- What options do the RBs have to appoint their uncle as a fourth Trustee and possibly remove one of the other Trustees?
- As I understand, the PETs are preparing a Deed of Trust to be registered with TRS. What rights do the RBs have to review and approve the Deed prior to registration? What rights of veto can the RBs reasonably expect over the operation of the Trust?
- Are there any implications arising from the PETs’ failure to register the Will Trust with TRS within two years of the GM’s death, even though the home had not been placed in Trust?
- Any additional aspects of the Trust or the PETs’ role the RBs should be considering?
Thank you all in advance for your help.