Trust Principles Overlooked

Trusts emerge regularly in relationship property disputes and they are generally well understood to take priority whenever there is a competition between the trust and a claim that the trust property otherwise falls within the pool of relationship assets available for division. Nevertheless, there appears to be some confusion over the boundaries of the Property (Relationships) Act 1976 (PRA) as it applies to trust property and this can cost a spouse, partner or beneficiary property that is rightfully theirs. This article explains three important points that ought to be borne in mind by practitioners working in this area, illustrated by an analysis of three recent decisions