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Section 50: Liability for breach of trust

Trusts Act · PART VII: BREACH OF TRUST

consolidated text (as at 2012, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

50. Liability for breach of trust (1) Subject to this Act and to the terms of the trust, a trustee who commits or concurs in a breach of trust shall be liable for— (a) any loss or depreciation in value of the trust property resulting from the breach; and (b) any profit which would have accrued to the trust, had there been no breach. (2) A trustee may not set off a profit accruing from one breach of trust against a loss or depreciation in value resulting from another. (3) A trustee shall not be liable for a breach of trust committed by another person prior to his appointment or for a breach of trust committed by his co-trustee unless— (a) he becomes or ought to become aware of the breach; and (b) he actively conceals the breach, or fails within a reasonable time to take proper steps to protect or restore the trust property or to prevent the breach. (4) Where trustees commit a breach of trust, they shall be liable jointly and severally. T22 – 25 [Issue 1] Trusts Act (5) A trustee who becomes aware of a breach of trust shall take all reasonable steps to have the breach remedied. (6) Nothing in the terms of a trust shall relieve a trustee of liability for a breach of trust arising from his own fraud, wilful misconduct or gross negligence.

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