Key takeaways
Outdated trusts create risk
Old trust definitions fail to reflect modern family structures.
Courts adapting to modern families
Judges increasingly recognise surrogacy and evolving definitions of beneficiaries.
Proactive reviews are essential
Regular updates prevent disputes and ensure trusts operate as intended.
A modern family, an outdated trust
A recent High Court decision involving the Longleat estate has delivered a clear message to high net worth (HNW) families and trustees: if your trust structures haven’t been updated, they may not work as intended.
The court confirmed that a surrogate-born child can be included as a beneficiary of family trusts despite historic wording that failed to contemplate modern family arrangements. For private clients, this is more than an interesting case. It is a practical warning about risk in legacy wealth structures.
The issue in brief
A child born via US surrogacy fell outside pre-1970 trust definitions of “child” and “issue”.
This created uncertainty in a high-value, multi-generational trust structure.
Trustees sought court approval to ensure flexibility.
The High Court confirmed they could include the child as a beneficiary.
The judge was clear: excluding the child would be unfair, and modern family reality must be recognised.
Why this matters for private wealth
Legacy trust drafting is a real liability – many family trusts still rely on definitions written decades ago. Those definitions may unintentionally exclude surrogate-born children, donor-conceived children, or adopted children.
Trust interpretation is not always straightforward – even where family intention is clear, legal outcomes depend on technical wording, trustee powers, and historic legal definitions.
Litigation risk is increasing – these issues often lead to contentious trusts and probate disputes, particularly in high-value estates.
Cross-border complexity is now standard – international elements, including US surrogacy arrangements, introduce tax and jurisdictional risks.
Trustees need protection – trustees should seek court approval where appropriate to mitigate risk and avoid personal liability.
The commercial takeaway
Trusts do not automatically evolve with your family. If your structures were created decades ago or not regularly reviewed, there is a risk they may not operate as intended today.
What should you be doing now?
Review trust definitions
Update wills and estate planning documents
Consider cross-border tax implications
Ensure trustee powers are sufficient
Seek early legal advice
At Hill Dickinson, our Private Client team advises on complex trust structures, estate planning, contentious probate, and asset protection strategies. We help clients ensure their wealth structures are robust, tax-efficient, and aligned with modern family circumstances. For support with your trust or estate planning, get in touch.
