Private Wealth Disputes

Private Wealth Disputes FAQs

• What are 'private wealth disputes'?

  Private wealth disputes generally involve conflict over privately owned assets, and the ownership, management, control and distribution of these assets. These disputes often arise from situations such as;

  • inheritance on a death - including arguments over whether a will was validly made, or whether there are claims which might override the usual succession rules;
  • trusts – where trustees and beneficiaries might disagree about distributions from the trust or the way that the trust has been run by the trustees. In the context of a divorce, there may also be questions over whether trust assets should fall within the marital assets;
  • loss of mental capacity – where a vulnerable individual may have been exploited by those they trust, or who hold a power of attorney, or who has entered into transactions which are invalid due to their incapacity; and
  • professional advice which may have led to a bad outcome, such as unexpected tax liabilities, invalid documents or transactions, or a failure to properly implement a client’s wishes.

  Most often the disputes are between members of the same family, but they can also involve third parties, professionals, HMRC, and other public authorities.

• Can you raise a private wealth dispute if the individuals involved are based abroad?

  Yes, you can. 

  Private wealth disputes regularly involve individuals and assets based in multiple jurisdictions. Such disputes can be complex, as different jurisdictions have different rules governing succession, trusts and taxation; some countries do not even recognise trusts. 

  Other challenges we see are over accessing information, tracing individuals; and the enforcement of legal documents or court judgments. There are complicated rules governing whether courts in different countries have jurisdiction to deal with the dispute; an area known as private international law. 

  Our private wealth disputes lawyers are experienced in guiding clients through these difficulties and coordinating advice from cross-border professionals in different countries.
  

• Can you sue a trust in the UK?

  In the UK a trust is not a separate legal entity in the same way as, for example, a company. A trust is a legal arrangement, where ‘trustees’ hold and manage assets for the benefit of ‘beneficiaries’ subject to certain terms and it is possible for the trustees to be sued. This could be by the Beneficiaries can sue trustees, if they believe the trust has been mismanaged or if the trustees have breached their duties in some way. 

  Trustees can also be sued by other trustees, by the settlor who set up the trust, or by any third parties that they contract with or have other legal relations with (e.g. banks, service providers).
  

• My Mum/Dad has died in Scotland and I am not mentioned in the will. What rights do I have?

  In Scotland, you can make a will on your own terms, however, there are certain individuals who cannot be entirely disinherited from an estate. Specifically, under Scots law, children and spouses/civil partners have automatic legal rights which give them a share of the deceased's moveable assets (generally speaking, everything apart from land or buildings). 

  Legal rights apply automatically and they apply whether or not there is will. The legal rights of children will be either ½ share of the moveable estate collectively among them (if there is no surviving spouse/civil partner) or 1/3 collectively among all children (if there is a surviving spouse/civil partner). 

  Legal rights must be claimed within 20 years of the date of death. With careful forward planning, legal rights can be mitigated but it is generally very hard to avoid legal rights altogether.

• My unmarried partner has died without a will. Am I entitled to any of their estate?

  In Scotland when an unmarried partner dies, the surviving partner does not have an automatic right to inherit part of their partner's estate if the will does not make provision for them. However, if there is no will, and if the couple were living together at the date of the partner's death, the survivor is entitled to apply to the Scottish courts for financial provision from their partner's estate. Crucially, any application for a cohabitant claim on death must be made within six months of the date of death, although this will be extended to 12 as a result of forthcoming legislation.