Does a successor trustee owe a fiduciary obligation to the former trustee not to frustrate their indemnity?

Abstract The nature of a trustee’s indemnity has been the subject of recent appellate judicial treatment in the United Kingdom and in Australia. Owing to the prevalence of the trading trust in Australia, the High Court of Australia has recently had occasion to consider whether a successor trustee owes a fiduciary duty to not frustrate a former trustee’s indemnity over trust assets. That decision has addressed divergences between Australia and the United Kingdom on the nature of the indemnity and reminds us of fundamental starting points about the law of trusts that are often forgotten.