Before putting the trust estate and the beneficiaries of a trust to the expense of an application for directions, a trustee needs to be sure of their reasons and that the legal or factual difficulties for consideration and resolution will warrant the time and cost.
Such applications are usually supported by evidence from the trustee and advice from specialist counsel. Should the application prove unnecessary, the trustee may find themselves personally liable for the costs of the application. Provided the trustee is seen to have acted with reasonable cause and to the benefit of the trust, they will be indemnified not only for the cost of the application but also in respect of the actions they take.
The Court’s Position
In relation to matters where there may be a conflict or deadlock, it may be appropriate to ask the Court to intervene and use its own discretion.