Trustee liability for co trustee defaults: delivery without oversight, failure to enquire, or knowing inaction can create responsibility. One trustee is not automatically liable for a co-trustee's breach, but absent an express contrary declaration a trustee is liable if he delivers trust property without ensuring proper application, allows a co-trustee to receive and retains it without reasonable enquiry or permits unreasonable retention, or, on becoming aware of a breach or intended breach, conceals it or fails within reasonable time to protect the beneficiary. A co-trustee who signs a receipt but proves non-receipt is not liable solely for that signature.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Trustee liability for co trustee defaults: delivery without oversight, failure to enquire, or knowing inaction can create responsibility.
One trustee is not automatically liable for a co-trustee's breach, but absent an express contrary declaration a trustee is liable if he delivers trust property without ensuring proper application, allows a co-trustee to receive and retains it without reasonable enquiry or permits unreasonable retention, or, on becoming aware of a breach or intended breach, conceals it or fails within reasonable time to protect the beneficiary. A co-trustee who signs a receipt but proves non-receipt is not liable solely for that signature.
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