Tracing trust property-breach of law-trusts laws , Financial Accounting

Tracing trust property
 
Apart from suing the trustee, in the event of a breach of trust, the beneficiary may follow the trust property and recover it from third parties, or the proceeds thereof from the trustee. But he cannot follow property which has ceased to be identifiable, or which has passed into the hands of a person taking for value without notice of his interest. Some rules of tracing:
 
1) Where the trustee mixes the funds of two separate trusts in one bank account, the presumption is that the first trust money paid into the account is the first drawn out, the Rule in Clayton's Case;

2) Where a trustee mixes trust funds with his own in a single bank account and draws upon that account for his own purpose, the presumption is that he has drawn on his own money first even if it was paid in more recently than the trust money - (re Hallett's Estate);

3) Where a trustee mixes trust funds with his own, the beneficiaries will have a first charge on the mixed fund for the trust money;

4) Where a trustee purchases property with his own money and with trust money, the beneficiaries will have a first charge on the property purchased.

Posted Date: 12/15/2012 12:25:07 AM | Location : United States







Related Discussions:- Tracing trust property-breach of law-trusts laws , Assignment Help, Ask Question on Tracing trust property-breach of law-trusts laws , Get Answer, Expert's Help, Tracing trust property-breach of law-trusts laws Discussions

Write discussion on Tracing trust property-breach of law-trusts laws
Your posts are moderated
Related Questions
The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

The following facts pertain to a noncancelable lease agreement between Lennox Leasing Company and Gill Company, a lessee. Inception date: May 1, 2012 Annual lease payment due at th

Following are Nintendo's revenue and expense accounts for a recent calendar year. Net sales ¥2,008,622 Cost of sales 1,864,981 Advertising expense 118,908 Other expense, net 397

Let us assume you expect to obtain Rs.2000 yearly for the next three years. The receipt of Rs.2000 is evenly divided. One part that is: Rs.1000 is obtained at the beginning of the

Q. Show benefits of factoring? Factor finance The factoring company will progress up to 80% of the face value of invoices raised. This would permit Doe Ltd to pay its trad

HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL

Joe Shareholder owns 100 shares of Peach Company stock which is currently selling for $100 per share. Peach declares a 2-1 stock split. How much are Joe's shares worth after the st

Limited Liability Partnership (LLP) - GENERAL PARTNERSHIP which, via registration with an appropriate state authority, is able to enshroud all its partners in limited liability. Ru

How does ordinary shares and preference shares included in the account

Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and