Abstract
The creditors of a bankrupt trustee who dealt with her qua trustee are generally regarded as being entitled to the fruits of her right of exoneration from trust assets to the exclusion of her personal creditors, as a matter of trust law. The author challenges this view and argues that the trustee’s interest in trust property forms part of the bankrupt’s estate and should be distributed in accordance with bankruptcy legislation, which confers no priority on trust creditors. Although the assignee of a bankrupt’s property takes it subject to equities, unsecured trust creditors have no relevant equitable interest.
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