A guardian who acquires estate property in which wards are residuary beneficiaries breaches fiduciary duty by reason of the conflict between personal interest and duty, even where the acquisition is at fair market value and without fraud. The breach arises from the conflict itself, not from any resulting loss. However, where the guardian acted honestly and without knowledge of wrongdoing, the court will exercise remedial discretion more generously, declining to award occupation rent and allowing credit for improvements and the original purchase price with interest. Claims based on breach of the express trust constituted by the Guardianship of Children Act are not barred by limitation, but claims based on the resulting constructive trust are statute barred under the rule in Taylor v Davies.
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