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What are the Rights of a Trustee?

What are the Rights of a Trustee?

Are you currently a trustee? Find out what rights you have during and after the administration of a trust.

22nd September 2016

When being appointed trustee of a trust, it confers important rights, powers and duties upon you in order to maintain and protect the interests of the beneficiaries. It is important to know what rights you have as a trustee, so your rights are not impeded by other trustees, beneficiaries or appointers.

It is always beneficial to talk to a trust lawyer concerning your role and rights when being a trustee. Our network of lawyers includes experienced trust lawyers that operate on a fixed-fee basis. Additionally, check out how and why a trustee can be removed from a trust.

What are the Rights of a Trustee?

The right for reimbursement

If you are a trustee and have had to incur some costs and expenses in the proper administration of the trust, you have the right to be reimbursed. This burden must be equally distributed amongst the beneficiaries, and you can have recourse to the trust property. It’s worth noting in regards to this right that:

  • The indemnity must be reasonable and must have properly incurred in the course of your duties as trustee;
  • If you are sued in your capacity as a trustee, you can claim your conduct as an incident of administration and you can be reimbursed for your legal fees; and
  • You have the right to pursue the beneficiaries personally for reimbursement for costs and expenses.

The right to seek advice from the court

As a trustee, you most likely have the statutory right to seek help from the court on the proper administration of the court, except in the Northern Territory and Tasmania. In these cases, the role of the court is to determine for the trustee what actions should be taken to protect and maintain the best interests of the trust.

The right to be relieved from a breach of trust

In all Trustee Acts in Australia, they empower the court to relieve you as a trustee from liability for breaches of a trust only if you acted reasonably, honestly and you ought fairly to be excused. An example is section 85 of the Trustee Act 1925 (NSW).The onus of proof lies on you as trustee, and you’ll need to satisfy the court that you acted:

  • In good faith and for the welfare of the trust;
  • Acted in the best interest for the trust and not for your own or any other trustee’s interest; and
  • That your acquittal not only grants you as trustee relief but also the beneficiaries.

The right to a contribution claim

If you as a trustee incur losses due to breach of trust, you can hold all co-trustees jointly and severally liable to help recuperate the costs. You can exercise this right even if you are solely responsible for the loss, as the court holds the opinion that even if you are a passive trustee, your inactivity has permitted the culpable trustee to breach the trust.

If you are an innocent trustee who have acted reasonably and have had a contribution claim made against you, you may be entitled to an indemnity if the active, defaulting trustee has kept trust property or has personally benefited from the breach.


As a trustee, you are granted many rights from the trust instrument, statute and court orders. If you need further clarification on what rights you posses through your position as trustee, or feel you need to enforce your rights in your current circumstances, it is recommended to contact a estate planning lawyer.

Need legal guidance with your role as a trustee? Contact a LawPath consultant on 1800 LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Logan Tennyson

Logan is a Paralegal working in our content team, which aims to provide free legal guides to facilitate public access to legal resources. With a passion for commercial and media law, his research explores how the law is adapting to emerging technologies and how this affects consumers and businesses alike.