Court of appeal decision Vervoot v Forrest impacts on the protection of trust assets
In Vervoot v Forrest the Court of Appeal held that a constructive trust can be imposed over the assets of an express trust.
In short Ms A lived with Mr B for 12 years. He had a trust prior to his relationship with Ms A. The trust bought a property during their relationship. Ms A assisted in finding the property, decorating it, maintain the house and garden.
The Court of Appeal said that whilst a constructive trust could arise in those circumstances (a constructive trust imposed over the house being an asset of the express trust) and it was theoretically possible, there is nothing to show contributions that significantly added value to the Trust Asset. The claim was not therefore successful.
Of interest from that decision are the following points:-
We encourage our clients that have trust assets to contact us for advice on how a contracting out agreement (previously referred to as pre-nuptial agreements) will be beneficial to your circumstances.