JSB171 Lecture Notes - Lecture 1: Clydesdale Bank, Linter, Lord Advocate
Document Summary
Rights of trustees (indemnity & effect of bankruptcy) In determining amount may take remuneration for s101(2) (unless contrary direction in the instrument: professional and business charges for business transacted, time expended, acts done by persons connected with the firm; Trustee can reimburse themselves from trust for reasonable expenses incurred in the execution of their duties: s72. But if some beneficiaries consenting to unauthorised acts, only they are liable. But if made in good faith & a benefit is conferred on the trust, court may allow allowance for costs incurred: trustee in debt to the trust must repay debt before recovering remedy. Trustee can require beneficiary of legal age and capacity to pay reasonable liabilities: hardoon v. Belilios [1901] ac 118 (trustee forcing beneficiary to pay for shares) = without paying out of their own pocket first. On bankruptcy of trustee: trust property is not divisible.
