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Legal Terms - Beddoe
A Beddoe order is a court ruling that allows a trustee to incur legal expenses in relation to a trust without the risk of personal liability.
A court order that authorizes trustees to spend money on behalf of the trust by initiating or defending a legal action. In order to obtain protection, the trustees must submit an application for such an order before participating in litigation. The order provides legal protection for the trustees against any claims made by the beneficiaries who argue the action should not have been initiated. Additionally, it allows the trustees to recoup the costs incurred from the trust property.
In the absence of obtaining an order, the aforementioned consequences may not occur. As a result, the trustees may face personal liability towards the beneficiaries for any losses suffered on behalf of the trust. Additionally, they may be required to personally cover any costs originating from the action taken. The name is derived from the legal case Re Beddoe (Downes v Cottam) [1893] 1 Ch 547.
A Beddoe order is a court ruling that allows a trustee to incur legal expenses in relation to a trust without the risk of personal liability.
A court order that authorizes trustees to spend money on behalf of the trust by initiating or defending a legal action. In order to obtain protection, the trustees must submit an application for such an order before participating in litigation. The order provides legal protection for the trustees against any claims made by the beneficiaries who argue the action should not have been initiated. Additionally, it allows the trustees to recoup the costs incurred from the trust property.
In the absence of obtaining an order, the aforementioned consequences may not occur. As a result, the trustees may face personal liability towards the beneficiaries for any losses suffered on behalf of the trust. Additionally, they may be required to personally cover any costs originating from the action taken. The name is derived from the legal case Re Beddoe (Downes v Cottam) [1893] 1 Ch 547.
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