BR Law Corporation
br@brlawcorp.com +65 6899 9888
  • Our Team
  • Practice Areas
  • News and Insights
  • Join Us
  • Contact Us
br@brlawcorp.com +65 6899 9888

Claim Against a Trustee

 
28 February 2018
Foo Soon Yien
Picture
​You are a beneficiary of a trust and your trustee misappropriated trust monies without your consent. Your trustee then passes away before legal proceedings are instituted against him. What legal recourse do you have against the trustee and/or his estate? 
A executed a Trust Deed in 2004, appointing her brother, B, as her trustee for S$X million. The Trust Deed provided that B was, inter alia, under an obligation to hold the sum on trust for A, apply the proceeds towards her benefit and transfer the monies to such persons as directed by her. Pursuant to the Trust Deed, S$X million was deposited into a Trust Account in the parties’ joint names, with B designating himself as the sole signatory.

Given their close relationship, A reposed absolute trust in B and left the management of the fund entirely in his hands. A did not request for an account of the trust monies as B had regularly sent her monthly payments for her living expenses and had given the impression that he was conscientiously performing his duties as trustee.

As it subsequently transpired, B suffered a coronary disease and passed away in 2014. An application for grant of probate was taken out by his wife, C, as the sole executrix and beneficiary named in his will. Concerned about the trust monies, A procured bank statements for the Trust Account. The bank statements revealed that the deceased had, without her knowledge or consent, made several unauthorised transfers and withdrawals over the years, leaving only a paltry balance of a few thousand dollars in the Trust Account.

A caveat was lodged against the deceased’s estate to prevent C from obtaining a grant of probate. When C refused to return the trust monies to A, we filed a Writ of Summons and Statement of Claim against the estate of B, on the grounds of the deceased’s breach of trust and/or fiduciary duty with respect to the unauthorised transactions and misappropriation of trust monies. For the reasons aforesaid, we requested the Court to grant the following reliefs:
  1. A declaration that there was a breach of trust by the deceased;
  2. Restitution of the full sum of S$X million and all profits and interest arising therefrom;
  3. A declaration for an inquiry to trace the trust monies into the properties held by the estate; and
  4. An order requiring the estate to provide a full account of the use of the trust monies.

At the same time, both parties agreed that judgment by consent would be entered for C to be appointed as the representative in the legal proceedings and for an order restraining the estate and/or C from doing the following acts:
  1. Removing the deceased’s assets located in Singapore or overseas, whether in his name or otherwise and whether solely or jointly owned;
  2. Disposing, dealing with or otherwise diminishing the value of his assets;
  3. Removing any assets from Singapore or otherwise disposing or dealing with his assets located within the jurisdiction insofar as the total unencumbered value of those assets did not exceed S$Y million.

After the caveat was lifted by A and probate was granted, we applied for and obtained judgment in default of defence against the estate. As such, A was able to successfully recover the entire sum which she was entitled to under the Trust Deed.

Comments

This case exemplifies the trite principle that all causes of action subsisting against a person survives against his estate upon his death. (see section 10(1) of the Civil Law Act) Even though B had passed away before legal proceedings could be commenced against him, the cause of action for breach of trust survived his death and continued against his estate. A was therefore able to maintain her claim, notwithstanding the death of B.
This case also highlights the importance of exercising due caution as a beneficiary of a trust. No matter how close your relationship to your trustee, it is always advisable to exercise some degree of supervision to ensure the proper administration of the trust. Such unfortunate situations, as in A’s case, can easily be avoided by taking simple steps, such as making yourself a signatory to the trust account, ensuring that your consent is required for all transactions, or requesting the trustee to provide an account of the trust assets at regular intervals. Indeed, in the wise words of Benjamin Franklin, “an ounce of prevention is worth a pound of cure”.


Foo Soon Yien
Director, BR Law Corporation
foosoonyien@brlawcorp.com

Post date. Edit this to change the date post was posted. Does not show up on published site. 28/2/2018


Your comment will be posted after it is approved.


Leave a Reply.

    We're Here To Help

    Our team welcome any comments or questions and will gladly assist you with your enquiry. You can call us on +65 6899 9888 or fill out our simple contact form. 

    Disclaimer

    The materials in these articles have been prepared for general informational purposes only and are not legal advice or a substitute for legal counsel. If you require legal advice for your particular circumstances, please consult a suitably qualified legal counsel. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not rely or act upon this information without seeking professional counsel. Whilst we endeavour to ensure that the information in these articles is correct, no warranty, express or implied, is given as to its accuracy and we do not accept any liability for error or omission. The authors of the articles are or were employees of BR Law Corporation at the time of  publication, but may no longer be, now or in the future, in the employ of the firm.

    Subscribe to our Newsletter

    Subscribe to our quarterly newsetter to keep up to date with a wealth of insights from the BR Law, BR Family Assets and BR Corporate services team.
    Subscribe to Newsletter

    RSS Feed

    Categories

    All
    Awards And Accolades
    Commercial Transactions
    Conveyancing
    Corporate Law
    COVID19
    Criminal Law
    Dispute Resolution
    Family And Matrimonial Law
    Intellectual Property
    International Law
    Personal Data Protection
    Probate And Administration
    Technology
    Wills And Trusts

    Archives

    February 2023
    November 2022
    June 2022
    May 2022
    April 2022
    March 2022
    November 2021
    October 2021
    September 2021
    July 2021
    May 2021
    April 2021
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    January 2020
    October 2019
    June 2019
    March 2019
    February 2019
    January 2019
    December 2018
    August 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    January 2017
    September 2016
    March 2015
    January 2015
    July 2014
    June 2014
    May 2014
    April 2014

Firm Brochure

Download

Practice Areas

Subscribe to our quarterly newsletter to keep up to date with a wealth of insights from the BR Law.
Subscribe to Newsletter

Contact Us

br@brlawcorp.com
 
Main Branch - Republic Plaza
9 Raffles Place
#08-03 Republic Plaza
Singapore 048619
+65 6388 1717 Telephone
+65 6394 7398 Fax

Branch Office - Bank of China
4 Battery Road #29-00
Bank of China
Singapore 049908
+65 6899 9888 Telephone
+65 6338 5377 Fax

Branch Office - United Square
101 Thomson Road
#26-02/04 United Square
Singapore 307591
+65 6336 1717 Telephone
+65 6394 7318 Fax

Awards and Accolades

Picture
Terms of Use​  •  Privacy Statement
​© Copyright 2018 BR Law Corporation. Registered in Singapore (UEN: 200312051N).