ABSTRACT

Strangers to a trust, or agents of the trustees who act in breach of their obligations, do not automatically become constructive trustees. They may be liable for breach of their duties in accordance with general principles of law. Strangers (or agents of the trustees) become constructive trustees or are accountable to the trust if they exceed their authority and intermeddle with the affairs of the trust. This is the case if:

(a) they act as trustees de son tort (the phrase literally means trustees of their own wrong); or

(b) they knowingly receive the trust property for their own benefit; or (c) they dishonestly participate in a breach of trust without receiving the trust property.