When two or more trustees commit a breach of trust, the law does not neatly divide the blame at the outset. Each is liable for the whole loss, and a beneficiary can pursue whichever trustee is easiest to recover from. That leaves a pressing practical question for the trustee who pays: how do they recover from the others? As a solicitor advising trustees — or acting for one caught in a co-trustee's wrongdoing — knowing how the loss is ultimately reallocated is essential to giving sound, reassuring advice.
What this lesson covers:
- Joint and Several Liability — why each trustee answers for the full loss and how a beneficiary chooses who to pursue.
- Routes to Recovery Between Trustees — the two mechanisms, contribution and indemnity, that let a trustee recover from co-trustees, and which is the default.
- Claiming Contribution — the statutory basis for recovering a proportionate share and how the court fixes the amount.
- Full Indemnity — when the court shifts the entire loss onto one trustee, including fraud, personal benefit, and a lay trustee's reliance on a professional.