Section 82 — Trusts Act 2019: Indemnification of trustee with agreement of beneficiaries where indemnity impaired

82 Indemnification of trustee with agreement of beneficiaries where indemnity impaired (1) A trustee may be indemnified from the trust property for a breach of trust if all of the beneficiaries who together hold all of the beneficial interest in the trust property agree and if the conditions set out in subsection (2) are satisfied. (2) The conditions are that— (a) every beneficiary consents to the indemnification; and (b) if the breach of trust arises from the trustee’s gross negligence, the beneficiaries receive independent legal advice before consenting to the indemnification; and (c) if any beneficiary is a beneficiary described in section 83(2) , the court has made an order under section 83 approving the indemnification on behalf of that beneficiary. (3) However, the beneficiaries cannot indemnify the trustee if the breach of trust arises from the trustee’s dishonesty or wilful misconduct. (4) See section 44 , which relates to the court’s consideration of gross negligence.