Trustee liabilities and indemnities

The appointment of family members rather than independent professional advisers to act as executors and trustees may seem to offer a saving of professional fees. There may also be advantages in their personal knowledge of the beneficiaries, as well as the deceased testator or settlor. Where the estate consists of a substantial interest in a family business the executor’s knowledge of the business may be particularly helpful. However, there may be a risk of conflict of interest, and claims of breach of trust. In particular, there may be issues relating to breaches of the self-dealing’ rule, to which executors and trustees are subject. The Court of Appeal considered the issues in Barnsley and Others v Noble [2016] EWCA Civ 799.