Publication Type
Journal Article
Version
publishedVersion
Publication Date
4-2017
Abstract
Where trust monies are used in breach of trust to pay for the deposit for a property, the courts have held that any mortgage loan which was used to fund the purchase does not count as the trustee's contribution to the purchase price for the purpose of determining the trustee's and the beneficiary's respective beneficial ownership in the property. This article considers two issues. First, if trust monies are used only after the trustee has paid for the deposit using his own money, are the loan monies obtained by the trustee under the mortgage still liable to be discounted as his contribution? Second, does it make a difference in the assessment whether the beneficiary is seeking to trace the misapplied trust funds into the sale proceeds or an account of profits which the trustee obtained in breach of the no-profit rule?
Discipline
Estates and Trusts
Publication
Trusts and Trustees
Volume
23
Issue
3
First Page
311
Last Page
318
ISSN
1363-1780
Identifier
10.1093/tandt/ttw217
Publisher
Oxford University Press (OUP): Policy I - Oxford Open Option D
Citation
TAN, Ruo Yu.
Misapplied trust funds and mortgage loans. (2017). Trusts and Trustees. 23, (3), 311-318.
Available at: https://ink.library.smu.edu.sg/sol_research/2594
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1093/tandt/ttw217