Limitation for breach of trust: future interests and s.21(3) Limitation Act 1980

Section 21(3) of the Limitation Act 1980 provides a six-year limitation period for an action by a beneficiary to recover trust property or in respect of any breach of trust, running from when the right of action accrued. It also provides that a right of action is not treated as accruing to a beneficiary entitled to a future interest until that interest falls into possession. Section 21(1) removes any limitation period only for fraud or fraudulent breach of trust, or to recover trust property from a trustee who holds or received it and converted it to his use. Neither applies, because Rupert was merely negligent and kept nothing. Quentin's remainder fell into possession on Pearl's death in January 2025. His six years therefore run from then, until January 2031, and his March 2026 claim is in time. A claim by Pearl, had she sued in 2026, would have been out of time, but her interest ended on her death.

Why B is wrong: Running time from the breach ignores the s.21(3) rule postponing accrual for future interests until they fall into possession.

Why C is wrong: Discovery is not the starting point under s.21(3), absent fraud, concealment or mistake under s.32, none of which arose.

Why D is wrong: Section 21(1) removes the limitation period only for fraud or recovery of trust property from the trustee, not for honest negligence.

Why E is wrong: The period under s.21(3) is six years, not twelve.