- A trustee used trust money along with his own money to purchase property in his own.
- The price of the property substantially substantially increased.
- He agreed to pay the money back
- He said he only had to pay it back – not give up the property
- Could the trustees claim an increased sum as the value of the property has increased?
- A trustee must account for the profit on a proportionate basis.
- It would be unjust for the trustee to retain the profit.
- If a profit results from breach of trust, a constructive trust will arise.
- A trustee cannot make direct or indirect profit from a fiduciary position.
- If profit is made by the trustee, beneficiaries are entitled to a lien over property, or claim a proportionate claim to the property.
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