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.