Liability of strangers to the trust

Question 1

what is dishonest assistance?

Answer 1

1. trust in existence at the material time.
2. trustee committed a breach of that trust.
3. D assisted the trustee to commit that breach of trust and
4. D’s assistance was dishonest.

Question 2

what does assistance mean in dishonest assistnace?

Answer 2

must be more than minimal

assists trustee to plan, commit or cover up the breach.

Question 3

remedies for dishonest assistance?

Answer 3

liable for profits they acquire by reason of their participation in breach.

Question 4

what is knowing receipt?

Answer 4

fault-based claim.

1. Misapplication of trust property or property held in another fiduciary capacity.
2. beneficial receipt by the D of the misapplied property or its traceable proceeds.
3. persistence of the claimant’s equitable proprietary interest in property received by the D.
4. knowledge of circumstances on the part of the D which makes it unconscionable for them to retain the benefit of the receipt.

Question 5

what happens if the receiver knows the money is from the turst but beleives they had the authority to transfer it to them?

Answer 5

should have questioned the trustee’s authority to transfer the funds.