(10) Trusts: Tracing Methods

Question 1

Replenishment Theory

Answer 1

Under the replenishment theory, after the date of the commingled funds entering the account all deposits after withdrawals to the account are considered the plaintiffs money as they are replenishing their funds.

Question 2

Hallets Case Rule

Answer 2

Under hallets case rule, after the date of commingled funds any money remaining or deposited into the account are considered the plaintiffs funds. All withdraws are seen as the account holders funds.

Question 3

Lowest Intermediate Balance Rule

Answer 3

Look at the time of when the commingled funds entered the account til the present date. The lowest balance is the plaintiffs funds.

Question 4

First In - First Out Rule

Answer 4

The first money into the account is considered the first money out of the account. This means after the commingling date any withdrawals by the account holder is of plaintiffs money and if the account holder makes enough withdrawals the plaintiff could end up with nothing (even if there are remaining funds or deposits made).