If you are a trustee or an executor, you may one day find yourself facing a difficult decision: should you take legal action, defend a claim, or continue a dispute using trust or estate funds?
This is where a Beddoe order becomes extremely important. Many trustees only learn about it when things have already gone wrong — often when they are told they may have to pay legal costs from their own pocket.
What Is A Beddoe Order?
A Beddoe order is a court order that protects you, as a trustee or executor, from personal liability for legal costs.
In simple terms, it is the court’s advance approval for you to bring or defend legal proceedings using trust or estate funds. If you obtain a Beddoe order, the court confirms that:
- You are acting properly as a trustee or executor
- The legal action is reasonable to pursue or defend
- Your legal costs (and any adverse costs) can be paid from the trust or estate
This protection applies even if you lose the case, as long as you acted honestly and within the scope of the order.
Without a Beddoe order, you may be taking a serious financial risk.
Why Is It Called A Beddoe Order?
The name comes from the case of Re Beddoe [1893] 1 Ch 547.
In that case, the court made it clear that a trustee who starts or defends legal proceedings without court approval does so at their own risk when it comes to costs — even if they relied on legal advice.
The principle established was simple but strict:
If you litigate without the court’s permission and lose, you may not be allowed to recover your costs from the trust or estate.
A Beddoe order exists to avoid that risk.
Why Legal Costs Are A Big Risk For Trustees And Executors
As a trustee or executor, you have a duty to act in the best interests of the beneficiaries. That includes protecting the trust or estate assets.
Legal disputes can be:
- Expensive
- Unpredictable
- Long-running
If you lose a case without having a Beddoe order, the court may decide that:
- Your legal costs were not properly incurred
- You acted unreasonably in pursuing or defending the claim
If that happens, you could be personally liable for:
- Your own solicitor’s and barrister’s fees
- The other party’s legal costs
This is exactly the situation a Beddoe order is designed to prevent.
What Does A Beddoe Order Actually Do?
A Beddoe order does three key things:
- Gives you permission to bring, defend, or continue specific legal proceedings
- Confirms your right to an indemnity, meaning costs can be paid from the trust or estate
- Protects you personally from being blamed later for the decision to litigate
Importantly, the court is not deciding whether you will win or lose the case. It is deciding whether the case is reasonable to pursue.
When Do You Need A Beddoe Order?
You should consider applying for a Beddoe order before starting or continuing litigation if:
- The dispute is serious, complex, or costly
- There is disagreement between beneficiaries
- There is a real risk the case could be lost
- The trust or estate could be significantly affected
The more risky the litigation, the more important a Beddoe order becomes.
Situations Where A Beddoe Order Is Commonly Needed
Third-Party Disputes
This is one of the most common situations.
Examples include:
- A claim against a former adviser (such as a solicitor or accountant)
- A dispute over ownership of assets claimed by someone outside the trust
- Litigation involving commercial contracts or property
In these cases, you are acting on behalf of the trust or estate, not yourself. A Beddoe order confirms that it is proper to use trust funds for the dispute.
Trust Disputes
These disputes relate directly to the trust itself.
Examples include:
- A claim that certain assets belong to the trust
- A challenge to how the trust should be interpreted
- Disputes over how trust funds should be administered
Because these disputes affect all beneficiaries, the court will often expect trustees to seek directions before proceeding.
Disputes With Beneficiaries
This is the most sensitive category.
Examples include:
- A beneficiary claiming you failed to exercise discretion properly
- Allegations of poor administration or breach of trust
Courts are generally less willing to grant Beddoe orders in beneficiary disputes. However, they are not unheard of, especially where:
- The trustee is acting neutrally
- The issue affects the trust as a whole
- The trustee is defending their conduct rather than advancing a personal position
When A Beddoe Order May Not Be Necessary
You may not need a Beddoe order if:
- All beneficiaries are adults
- All beneficiaries have full mental capacity
- All beneficiaries clearly consent to the proposed legal action
In this situation, the risk of personal liability is lower because the beneficiaries have agreed to the use of trust funds.
That said, consent must be fully informed and properly documented. If there is any doubt, a Beddoe order is still safer.
How Do You Apply For A Beddoe Order?
A Beddoe order is obtained by making an application to the court under Part 64 of the Civil Procedure Rules, using the Part 8 procedure.
This is a directions application, not a full trial.
What Does The Court Look At?
When deciding whether to grant a Beddoe order, the court will consider:
- Whether the proposed litigation is for the benefit of the trust or estate
- The strengths and weaknesses of the case
- The likely costs versus potential benefit
- Whether alternative options, such as mediation, have been considered
The court is not deciding the outcome of the dispute. It is deciding whether it is sensible for you to litigate using trust funds.
Full And Frank Disclosure Is Essential
When applying for a Beddoe order, you must place all relevant information before the court.
This includes:
- Facts that support your position
- Facts that may weaken your position
- Any risks or uncertainties
If you fail to give full disclosure and the court later discovers this, the Beddoe order can be:
- Challenged
- Set aside
- Rendered unenforceable
This would remove the protection you were relying on.
Do You Need A Barrister’s Opinion?
In most cases, yes.
The court usually expects:
- A written opinion from a barrister
- An objective assessment of the merits
- A clear explanation of risks
This helps the court decide whether the litigation is reasonable and whether costs should be protected.
What Role Do Beneficiaries Play?
Beneficiaries are usually made parties to the Beddoe application.
They may:
- Support the application
- Oppose it
- Take a neutral position
If beneficiaries actively oppose the application, the court may list a hearing. While this increases cost, it also makes the need for costs protection even more important.
What If The Court Refuses The Beddoe Order?
Even if your application is refused, trustees are usually allowed to recover the costs of making the application itself from the trust or estate — unless the application was plainly unreasonable.
However, refusal means you proceed with litigation at your own risk.
Special Rules For Charitable Trusts
If you are a trustee of a charitable trust, additional rules apply.
Before applying to the court for a Beddoe order, you must usually obtain authorisation from the Charity Commission. This is because such litigation often falls within the definition of “charity proceedings” under the Charities Act 2011.
What Will The Charity Commission Do?
The Charity Commission may:
- Authorise an application to the court
- Provide advice that effectively gives similar protection
- Set limits on costs or stages of litigation
If trustees follow the Charity Commission’s advice, they are generally protected from criticism or personal liability.
So When Should You Seriously Consider A Beddoe Order?
You should strongly consider a Beddoe order if:
- Litigation is unavoidable
- Costs could be significant
- There is disagreement or risk of criticism
- You want certainty and protection
It is a preventative step that protects you before problems arise.
Key Takeaways
- A Beddoe order protects you from personal liability for legal costs
- It is especially important in risky or expensive disputes
- It provides certainty and peace of mind
- It must be applied for before or early in litigation
- Full disclosure and proper advice are essential
If you are unsure whether to apply for a Beddoe order, that uncertainty alone is often a sign that you should seek one.
Taking early advice and obtaining court approval can save you from serious financial and legal consequences later.