Jane Pty Ltd is the trustee of Moore Family Trust. The trust property is worth $450,000....

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Accounting

Jane Pty Ltd is the trustee of Moore Family Trust. The trustproperty is worth $450,000. Jane Pty Ltd runs a cafe on behalf ofthe trust. The trust deed notes that the trustee can only enterinto contracts in relation to running the cafe. However, Jane PtyLtd, on behalf of the trust, entered into several transactionsworth $150,000. These transactions were in relation to building arailway in Sweden. Jane Pty Ltd pays the $150,000.
Advise Jane Pty Ltd on its right of indemnification fromthe trust property.

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Here is my Answer for the above question A trust is a legal relationship imposing obligations on a trustee in respect of property Normally a trustee is personally liable for obligations incurred in administering the trust That is even though the obligations are incurred as trustee the trustee is still personally liable and can be sued and have its own assets applied to meet any judgment A trustee may however rely on a right of indemnity against trust assets to meet obligations incurred See Answer

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