Jemma Alizade & Ors v Martin Kudlick
[2023] EWHC 1082 (Ch)
Jane Wilmot-Smith v Hugh Patrick Burstall & Anor
3 May 2023
[2023] EWHC 962 (Ch)
High Court
Jane wanted more information about how her uncle's money was handled after he died. The court said she already had enough information to ask any important questions and that getting more now would be too difficult and too late.
Key Facts
- •Jane Wilmot-Smith, a residuary beneficiary, seeks disclosure of documents from the executors/trustees of her uncle's estate.
- •The estate included a farm and rental property, share portfolio, and farming business, totaling over £3.59 million.
- •A partnership was formed to run the farming business, with David Wilmot-Smith (Jane's brother) as managing partner.
- •The estate was distributed in 2016, with each beneficiary receiving £1,349,532.45.
- •Concerns arose in 2013 regarding David's management of the partnership and estate finances.
- •Numerous requests for information and documents were made over several years, with varying responses from the defendants.
- •Jane's claim focuses on missing or incomplete information concerning share sales, dividends, and the sale of estate assets.
- •The claim was issued in 2022, seeking disclosure of tax returns, share records, correspondence related to asset sales, bank statements, and partnership records.
Legal Principles
Trustees have a duty to keep proper records and account to beneficiaries.
Lewin on Trusts (20th edition) [21-031 to 21-039]
A trustee's duty to account includes accounting for actions taken with trust assets.
RNLI v. Headley [2016] EWHC 1948 (Ch)
The court has inherent jurisdiction to supervise trust administration and order disclosure of necessary documents for beneficiaries to understand and vindicate their rights.
Schmidt v Rosewood Trust Ltd [2003] 2 AC 709, PC
The court has discretion in determining what and how disclosure should be made to a beneficiary; trustees need not answer endless inquiries beyond what's reasonable.
Lewin on Trusts [21-030, 21-038]
Costs of preparing standard accounts are trust expenses, but costs of answering detailed questions are borne by the beneficiary.
Lewin on Trusts [21-100]
No limitation period applies to claims for an account against a trustee.
Henchley v. Thompson [2017] EWHC 225 (Ch)
Outcomes
The court declines to order further disclosure of estate documents.
Jane already possessed sufficient documentation to pursue any worthwhile breach of trust claims; further requests are unreasonable given the passage of time, unavailability of documents, and distribution of the estate. The court exercises its discretion.
David Wilmot-Smith is to either answer outstanding questions about dividends or file a statement confirming the unavailability of relevant documents.
To address remaining queries regarding specific shareholdings and the sale of estate shares.