ABSTRACT

It is an elementary principle of trust law that the trustees are required to distribute the trust property (income and/or capital) to the beneficiaries properly entitled to receive the same. Failure to distribute to the correct beneficiary subjects the trustees to liability for breach of trust, although in appropriate cases they may apply to the court for relief under s 61 of the Trustee Act 1925. Thus, in Eaves v Hickson (1861) 30 Beav 136, trustees were liable to make good sums wrongly paid to a beneficiary in reliance on a forged marriage certificate. Likewise, in Re Hulkes (1886) 33 Ch D 552, the trustees were liable for sums paid to the wrong beneficiaries based on an honest, but incorrect, construction of the trust instrument.