A Corrupt Trustee Dishonestly Withdraws Some of the Trust Funds

question 7

Multiple Choice

A corrupt trustee dishonestly withdraws some of the trust funds and pays them into his own bank account. He use some to make gifts to members of his family who do not know the source of the money. Which of the following statements are true (more than one applies) ?

• A) The trustee is in breach of trust and will be personally liable to restore to the trust the value of what he took from the trust.
• B) The beneficiaries can recover from the trustee any sums which he took and which are still in his possession.
• C) The beneficiaries can recover from any members of the family any sums which they received which can be proved to have been derived from the trust and which are still in their possession.
• D) The family members are personally liable, as volunteers, to restore to the trust fund the value of any sums which they received and which can be proved to have been derived from the trust but which they have spent or otherwise disposed of.

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Definitions:

Mohawk

A member of a Native American tribe, part of the Iroquois Confederacy, traditionally based in what is now the northeastern United States.

Iroquois

A historically powerful northeast Native American confederacy known as the Haudenosaunee, consisting of six nations: Mohawk, Onondaga, Oneida, Cayuga, Seneca, and Tuscarora.

Joseph Brant

A Mohawk military and political leader who played a significant role during the American Revolutionary War, aligning with the British against American settlers.

Loyalists

Colonists in America who remained loyal to the British Crown before and during the American Revolutionary War, opposing the revolution.