Issues Of Trust Across The Atlantic – Lisa-Marie Presley Trust Dispute

Priscilla Presley, the ex-wife of Elvis Presley, has filed a claim against the estate of her late daughter, Lisa-Marie Presley, who died in January 2023.

The dispute is regarding an amendment in 2016 to Lisa-Marie Presley’s Trust which removed Priscilla Presley and her Co-Trustee Barry Siege as trustees. Priscilla Presley is claiming that improper procedure was followed because she was not notified of the change to the Trust during Lisa-Marie Presley’s lifetime, and this was a requirement of the Trust.

She also claims that the amendment was fraudulent as her name was misspelt and Lisa-Marie Presley’s signature is atypical, in addition, the amendment was not witnessed or notarised. Priscilla Presley continued to act as a trustee for the next six years and claims she only became aware of the change after Lisa-Marie Presley had passed away.

Riley Keough is the surviving daughter of Lisa-Marie Presley and by the 2016 amendment is the sole trustee and is a beneficiary of the Trust along with her two half-siblings. Her argument is that the 2016 amendment is valid and is supported by the fact that her mother sued Brian Siege in 2018 for reckless mismanagement of the Trust fund claiming he had reduced the Trust fund to $14,000 from its initial value of $100 million, by poor investment. Therefore, it would be logical that she would have wanted to remove him as a trustee and enact the amendment.

Today’s value of the Trust is not known but it is known that it includes Gracelands and a 15% share of Elvis Presley Enterprises which produces a significant income.

It is reported that Riley has changed the locks at Graceland to exclude Priscilla Presley from the property and access to archived documents.

The case is yet to be heard and could well run for many years at a significant cost.

What claim could Priscilla Presley have here?

Priscilla Presley’s claim here would likely fall under the Trustee Act 1925, as the lifetime Trust would not form part of Lisa-Marie Presley’s estate in the same way it has under US jurisdiction. In England and Wales, there are a number of ways to remove a trustee.

The Trust deed or instrument

In many cases, the Trust instrument sets out the trustees’ powers and duties as well as the person or persons who may have the power to appoint, substitute and remove trustees and on what basis they can do so.

If the instrument is not clear or silent or limits the power to appoint or remove trustees it may be necessary to rely on one of the other ways available as set out below:

Trustee Act 1925

Under section 36 of the Trustee Act 1925, trustees can be removed if they are dead, remain out of the UK for more than a year, want to be removed, refuse to act, are unfit to act, are incapable of acting, or where they are minors.

However, the only people who can remove a trustee under section 36 are:

Determining whether a person is unfit to act can be difficult. The view that someone is unfit to act can be very subjective and such a claim will almost certainly result in a challenge of the allegation.

Being ‘unfit’ depends on the circumstances of the case, it is often the case that persons deemed unfit to act have been made bankrupt or convicted of fraud.

To utilise section 36 you have to be a trustee or have the power to remove trustees under the trust instrument.

As a beneficiary you may be able to remove a trustee utilising Section 19 Trusts of Land and Appointment of Trustees Act 1996, if the Trust instrument doesn’t give anyone else the power and all the beneficiaries are over 18 years of sound mind and collectively are entitled to the whole Trust fund.

Court order

Or in the alternative, the Court has the power to remove a trustee by an application from a beneficiary or a trustee.

Conclusion

It is clear from the above that the best method for seeking to remove a trustee requires careful consideration of the circumstances, including a thorough understanding of the powers afforded in the Trust instrument, and the legislation available, and ensuring due process is followed.

If you are a trustee threatened with proceedings for removal or a beneficiary with concerns that a Trust is being improperly managed, we would be happy to discuss your circumstances and assist you in the matter.