top of page
Review Your SQE 1 Practice Records

Examination Timing: 00H00M23S

Michael, as trustee, breaches his trust by transferring trust funds to his personal account. Which of the following statements best describes the position?

< Previous

You have chosen the correct answer
Your selected option: A

Next >

The correct answer is A. When a trustee breaches their duty by misappropriating trust funds, the beneficiaries have the right to trace and recover those funds from the trustee's personal account. This equitable remedy allows the beneficiaries to follow the misappropriated funds and reclaim them. Tracing enables the identification and recovery of trust property that has been wrongfully disposed of, ensuring that beneficiaries' interests are protected. 


Key Point: The equitable remedy of tracing allows beneficiaries to recover misappropriated trust funds by following the money into the trustee's personal account or any subsequent assets purchased with those funds.

Collect Question

userContent

Study CELE SQE.png
CELE SQE PASS wishes from Lucky Lion_

Ai Content

bottom of page