ABSTRACT

This chapter considers the liability of trustees for breach of trust ; the personal liability of third party ‘ strangers ’ for their involvement in a breach of trust, whether because they assisted that breach of trust dishonestly or because they received property from a breach of trust unconscionably; and the possibilities for tracing property which was originally held on trust or which was a substitute for that trust property. It is easiest to think of these three different types of action as being the alternatives which are open to benefi ciaries if there is some breach of trust (or a breach of some other fi duciary duty). The benefi ciaries are effectively able to recover their loss from the trustees, or from strangers, or from any person who holds the traceable proceeds of the trust property. It is quite an arsenal of equitable doctrines available to the benefi ciaries.