A finding that a trustee breached their duties is rarely the end of the matter. The law gives trustees a range of ways to limit, reduce, or escape liability altogether — and a solicitor advising a trustee, a beneficiary, or a professional trust company needs to know precisely when each one bites. Whether you're defending a trustee who acted honestly or advising a beneficiary on whether a claim is still worth bringing, these defences shape the practical outcome.
This lesson takes you through the four main defences in turn, building from the protections written into the trust itself to the discretion the court holds in reserve.
- Exemption Clauses — how a clause in the trust instrument can shield a trustee from liability, and the limits the law refuses to cross.
- Beneficiary Consent and Impounding — when a beneficiary who approved a breach loses the right to sue, and how a trustee can reach into that beneficiary's interest.
- Limitation and Laches — the time limits on bringing a claim, the situations where no limit applies, and the equitable doctrine that bars stale claims.
- Court Relief under s 61 Trustee Act 1925 — the court's discretionary power to excuse an honest, reasonable trustee in whole or in part.