ABSTRACT
A trustee is liable for a breach of trust if he fails to perform his duties either by omitting to do any act which he ought to do, or doing an act which he ought not to do. Such duties may be created by the settlor in the trust instrument (such as the duty to distribute both income and capital) or may be imposed generally, in accordance with trust law (for example, duties of care and impartiality). A breach of trust may range from a fraudulent disposal of trust property, to an innocent dereliction of duties by investing trust monies in unauthorised investments. The beneficiary is required to establish a causal connection between the breach of trust and the loss suffered, either directly or indirectly by the trust. Indeed, even if the trust suffers no loss, the beneficiary is entitled to claim any profit accruing to the trustees as a result of a breach.
