Equity and Trusts in Australia

Both equity and trustee legislation confer rights on trustees which enable them to perform their obligations effectively and protect them from some of the more onerous aspects of the responsibilities of trusteeship. Only selected rights are covered in this chapter, the most important of which is the trustee’s right of indemnity. The trustee’s most significant liability is for breach of trust; however, the trustee is also liable at law to incur the expenses of the trust. This liability gives rise to the trustee’s right of indemnity. The trustee’s exposure to liability must therefore be understood before his or her rights can be considered.