Reimbursement for Trustee Expenses, Unjust Enrichment

A trustee is typically entitled to reimbursement for expenses the trustee advances for the trust. Section 456.7-709, RSMo. Reimbursement is available for “expenses that were properly incurred in the administration of the trust.” Further, to the extent necessary to prevent unjust enrichment, expenses that were not properly incurred in the administration of the trust are eligible for reimbursement.

Nevertheless, on appropriate grounds, a court may delay or deny reimbursement for expenses which benefitted a trust. Examples of appropriate grounds include:  (1) whether the trustee acted in bad faith, (2) whether the trustee knew that the expense was inappropriate, (3) whether the trustee reasonably believed the expense was necessary for the preservation of the trust, (4) whether the expense has resulted in a benefit, and (5) whether indemnity can be allowed without defeating or impairing the purposes of the trust.