Authors: Aimee Mitchell
Published: 28 February 2023
Pages: 31

Introduction

The disclosure of trust information to beneficiaries has been a hot topic for both trustees and beneficiaries in recent years, particularly since the introduction of new disclosure rules under the Trusts Act 2019 (Trusts Act).

Settlors and trustees have raised concerns about the new rules, particularly that they may give beneficiaries a heightened sense of entitlement to information and that the new rules may encourage disgruntled or remote beneficiaries to make broad, sweeping requests for information that require significant time and cost to resolve.

The purpose of this paper is to explain how the rules have changed, address some of the questions and issues that have arisen since the new rules were introduced, and provide some practical guidance on what trustees should be doing to satisfy their obligations and other steps that may be taken to address some of the most common concerns.
 

Content outline

• Pre-Trusts Act disclosure requirements
• Trusts Act disclosure requirements
• Disclosure of trust information upon request (s 52)
• Where the trustee decides to give no information
• What can a beneficiary do if the trustees refuse a request?
• What are the potential implications for a trustee who refuses a disclosure request outright?
• Memoranda of guidance
• Legal advice obtained by the trustees
• Disclosure versus discovery
• Trustees’ reasons
• Practical steps trustees can take