Assets held on trust are impressed with the trust and are traceable into the hands of third parties who might receive trust property in Breach of Trust.

Assets can be traced under the common law and in equity. Tracing under the common law is more limited in scope and is based on the legal ownership of property.

Equitable tracing is based not on legal ownership but on the claimant’s possession of an equitable interest.

Equity developed special rules for identifying the plaintiff’s property when it has been mixed with other property.

Tracing is not a remedy for breach of trust; tracing is merely the process of identifying the property. It is then up to the courts to decide what will happen to it.{Hudson, Alastair (2009). Equity and Trusts (6th ed.). Routledge-Cavendish at p 813}.

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

This tab updated on 1 August 2015