THE LAW OF TRUST 347
VI. Powers of the Beneficiaries
VI (1) Power of a sole beneficiary.
VI (2) Power of one of several beneficiaries.
Is a trustee liable for breach of trust by his predecessor ? He is not.
Is a trustee liable for the breach of trust committed by a Co-trustee ?
He is not except in the following cases:—
(i) Where he has delivered trust-property to his Co-trustee without seeing to its proper application.
(ii) Where he allows his Co-trustee to receive trust property and fails to make due inquiry as to the Co-trustee’s dealings therewith or allows him to retain it longer than the circumstances of the case reasonably require.
(iii) Where he becomes aware of a breach by a Co-trustee and conceals it or does not take proper steps to protect the property.
- Breach of Trust jointly committed by Co-trustees.
What is the liability for each ? Is it for the whole ? Each is liable for the whole to the beneficiary. There will be a right of contribution from the rest.
- Liability for Payment by a Trustee to a person who is not the person in whom the beneficiary’s interest is not vested.
Trustee is not liable, provided :
(i) He had no notice that the interest had vested in another person.
(ii) That the person to whom payment is made was a person who was entitled to payment.
XIII. Protection to Trustees
* (1) General Protection.
*XIII (2) Statute of Limitation.
- Each page contains only the heading and not the details—ed.