ABSTRACT
A trustee will be liable for breach of trust if that breach of trust causes a loss to the beneficiaries. Such a trustee will be liable in the event of a breach of trust either to restore the trust property which was passed away in breach of trust, or if that is not possible to reconstitute the value of the trust fund in cash to its level before the breach of trust, or to pay equitable compensation to the beneficiaries.1 A trustee will be liable in the situation in which the breach of trust has caused some loss to the trust.2 There will be no liability in respect of a breach of trust where that breach resulted in no loss to the trust.3 The measurement of compensation will be the actual, demonstrable loss to the trust, rather than some intermediate value of the property lost to the trust.4
