Section 81 — Trusts Act 2019: Trustee’s liability for expenses and liabilities incurred, and trustee’s right to indemnity

81 Trustee’s liability for expenses and liabilities incurred, and trustee’s right to indemnity (1) A trustee is personally liable for an expense or a liability incurred by the trustee when acting as a trustee. (2) However, a trustee who incurs an expense or a liability when acting reasonably on behalf of the trust is entitled,— (a) if the trustee has paid the expense or discharged the liability out of the trustee’s own funds, to reimbursement from the trust property; or (b) in any other case, to pay the expense or discharge the liability directly from the trust property (or to have it paid or discharged by a remaining trustee). (3) The operation and enforcement of the indemnity in this section is governed by the rules of the common law and equity relating to trusts. (4) This section does not limit any indemnity available at common law or in equity. Compare: 1956 No 61 s 38(2)