Management services for trusts, funds, and companies involved in disputes

Structures like trusts, funds, and companies are ideal vehicles for managing private wealth and safeguarding assets, but disputes sometimes arise that threaten their stability and effectiveness and can even threaten the core assets themselves.

At Ocorian, we understand the challenges presented by these volatile situations and have a breadth of experience in dealing with them. Regardless of whether we are already appointed to a structure which becomes distressed or come in as an independent service provider, we can offer bespoke services to navigate and ideally help resolve disputes with professionalism, pragmatism, and diplomacy.

In the article below, Paul Buckle, Director of Ocorian’s Guernsey Private Client team, delves deeper into private wealth litigation and explains how Ocorian can support in managing and resolving disputes.

Understanding the nature of trust and private wealth disputes

Disputes involving trusts and associated structures are often high value, complex and emotionally challenging for those involved. Furthermore, whether addressed through private discussions or public proceedings, disputes can often be expensive, time-consuming, and damaging to reputations.

Such features are typical with any dispute, but unlike more commercial disagreements, wealth disputes frequently stem from deeply personal issues, making sensitivity and understanding, as well as commercial good sense, vital components in their successful resolution. Perhaps most importantly, their resolution is not usually a case of one person walking away with a financial award. Instead, it may be that only a complex restructuring of the underlying assets or a division of wealth will heal family rifts and enable those involved to move forward.

At Ocorian, we recognise that managing and resolving private wealth disputes requires commercial and personal understanding. We understand the legal and financial complexities, but also recognise the human element. Our method is, therefore, both robust and empathetic and focused on resolving matters with sensitivity, minimal disruption, and maximum benefit to the parties.

Alternative dispute resolution (ADR)

While sometimes inevitable, litigation is rarely the best outcome.

At Ocorian, we prefer ADR as a well-suited route for private wealth disputes. Mediation offers a confidential and less adversarial approach than court proceedings and often leads to mutually satisfactory outcomes. We find that engaging in private dialogue away from the more formal court process and yet still being able to raise matters of particular concern enables parties to better understand each other's perspectives and priorities and to achieve resolutions that are sustainable and equitable.

Hence, whilst we are prepared to go to court where necessary, we will always look for alternative ways to resolve a dispute.

Funding

Funding wealth disputes can be a significant financial challenge, often leading to the perception that assets under administration are readily available to cover costs.

This issue involves two key aspects. Firstly, trust litigation is inherently expensive. At Ocorian, we strive to alleviate financial pressures by exploring innovative solutions such as third-party litigation funding, After-the-Event (ATE) insurance, and strategic cost management. Secondly, Ocorian’s expertise in navigating the complex cost rules surrounding wealth disputes allows us to proactively safeguard assets under administration from being improperly exposed to litigation expenses.

By performing a thorough evaluation of costs and risks, we enable clients to make well-informed decisions regarding the pursuit of litigation.

Ensuring stability during disputes

A dispute cannot be allowed to overwhelm a structure. Except in the rare cases where a dispute causes an asset freeze, even distressed trusts or companies need proper administration, as beneficiaries may still require distributions and investment monitoring.  

This point is often overlooked. At Ocorian, we ensure that structures are managed with diligence and stability throughout the dispute process, safeguarding their future viability.

Ocorian’s dispute resolution services

Ocorian offers a range of fiduciary services for trusts, funds, and companies involved in disputes.

Trusts

We provide independent trustee services in scenarios such as:

• Conflicts of interest or regulatory sanctions affecting current trustees.

• Breakdown of the relationship between the current trustees and beneficiaries.

• Breakdowns in family relationships between beneficiaries or settlors.

• Neutral trust management during creditor attacks or insolvency claims.

• Neutral evaluation (and, where appropriate, the bringing) of claims against former trustees or third parties.

• Expert witness services.

Companies

Ocorian specialises in handling company disputes across various scenarios, including cases where a trustee acts as a shareholder of an underlying entity or provides director or management services. Leveraging our commercial expertise, we offer practical solutions such as investigating financial losses, facilitating litigation, and resolving board deadlocks effectively.

Funds and unit trusts

Ocorian possesses extensive expertise in resolving disputes involving distressed fund vehicles. Whether it involves winding up distressed unit trusts or rectifying defective records, our specialised approach ensures seamless and compliant resolution of issues within fund structures.

Tax disputes

Tax-related issues can be particularly challenging, especially when unpaid liabilities or penalties are involved. We have several staff with a strong tax background, so whilst we do not give tax advice, we are able to undertake reviews of a structure’s tax compliance, as well as to assist with assessments, voluntary disclosures, and even undertake litigation to recover losses, while at the same time ensuring ongoing compliance with applicable tax regulations.

Why choose Ocorian for dispute resolution?

At Ocorian, we pride ourselves on being the provider of choice for fiduciary services to distressed structures, with years of experience and a dedicated team of professionals, we are regularly selected to act as a trusted partner to help resolve disputes involving trusts, funds, and companies.

Our commitment to excellence is underpinned by:

• Our multidisciplinary expertise spanning law, accountancy, and trust administration.

• Our independence and adaptability, ensuring impartial management of disputes.

• Our strong relationships with local and international advisors across major jurisdictions.

• Our proven track record in managing complex litigation and fostering resolution.

Ocorian’s expertise in action 

Recent examples of our experience in dealing with private wealth disputes includes:

• Regularising long-standing inherited tax issues within a structure taken on from another fiduciary.

• Resolving a complex dispute involving family dynamics with sensitivity and diplomacy.

• Issuing proceedings to successfully recover monies which had been fraudulently extracted by third parties from trust and company structures.

If you are involved with a trust, fund, or company involved in a dispute, let Ocorian’s expert team guide you toward resolution.

Our philosophy of excellence, combined with our understanding of complex fiduciary challenges, ensures that we deliver solutions tailored to your unique needs.

Explore how Ocorian can support you in resolving disputes while preserving the integrity of your structures.