What happens where there has been no change in the trust property? (Trustees' liability for breach: Proprietary claims-FS

Question 1

What is the legal effect if a trustee holds misappropriated trust property in its original form?

Answer 1

The beneficiaries can make a proprietary claim to recover the property directly, as there has been no change in form.

Question 2

When is it unnecessary to bring a personal claim for breach of trust?

Answer 2

When the original trust property is still intact and identifiable, allowing for a direct proprietary recovery.

Question 3

Why might a proprietary claim be preferable to a personal claim when the property remains unchanged?

Answer 3

Because it allows the exact property to be recovered without needing to claim its monetary equivalent.

Question 4

How would a court typically resolve a trustee’s self-dealing transaction involving trust property still in original form?

Answer 4

The court would void the transaction and order the return of legal title to the joint names of the trustees.