A former trustee's right of indemnity from trust property for a liability incurred while trustee is not lost upon removal, and extends in principle to costs of defending claims arising from that liability. However, where the claims against the former trustee involve allegations of knowing involvement in breaches of duty, the court will not order indemnity for costs before the underlying proceeding is determined, because the entitlement to indemnity cannot be separated from the question of disentitling conduct. Section 72 of the Trusts Act 1973 (Qld) does not apply to former trustees. The conflict between Gatsios and [name withheld] v [name withheld] on the scope of 'properly incurred' expenses remains unresolved.
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