Fraud on trust property
32 Fraud on trust property
An action:
in respect of fraud or a fraudulent breach of trust against a person who is, while a trustee, a party or privy to the fraud or the breach of trust, or against his successor;
for a remedy for conversion to a person's own use of trust property received by him as a trustee;
to recover trust property, or property into which trust property can be traced, against a trustee or against any other person; or
to recover money on account of a wrongful distribution of trust property against the person to whom the property is distributed or against his successor,
is not maintainable by a trustee of the trust or a beneficiary under the trust after the expiration of:
a limitation period of 12 years from the date upon which the person entitled to bring the action first discovered or may with reasonable diligence have discovered the facts giving rise to the right to relief; or
such other limitation period for that action fixed by or under a provision of this Act other than this section,
whichever is the only or later to expire.
Except in the case of fraud or a fraudulent breach of trust, and except so far as concerns income converted by a trustee to his own use or income retained and still held by the trustee or his successor at the time when the action is brought, this section does not apply to an action to recover arrears of income.
This Act’s bill:Second reading speech
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