Liability for breach of trust

Trustees can potentially be held liable for breach of trust - for example, where they act outside the governing document or receive an unauthorised payment or other personal benefit. 

It is unusual for trustees to be found liable for breach of trust if they have acted honestly and reasonably.

If a trustee is held to be personally liable for breach of trust, they might be required to make good any loss – for example, by returning an unauthorised payment.

Trustees can apply to the court or Charity Commission for relief from breach of trust. Trustees might also decide to take out trustee liability insurance, subject to certain restrictions.