Trust in the Hungarian Law 5.
Liability of the trustee
The trustee is liable toward the settlor and beneficiary for the breach of his obligations in accordance with general rules of liability for damages. If the trustee carries out his duties without consideration, rules of liability for damages are applicable to his breach of gratuitous contracts. The settlor and beneficiary may claim the management of any financial gain as part of the trust asset, which was realised through the trustee’s breach of his obligations arising from the trust.
The trustee is liable as well for the damages occurring in the trust assets caused by breaching the obligations towards the settlor or the beneficiary, according to the general rules of liability for damages. The framework provides rules for the liability of the trustee towards third persons, as well. First of all, the trustee is liable with the trust assets for the fulfillment of the obligations. Second, the trustee has unlimited liability with its personal assets for the fulfillment of the claims obligating the trust assets, if they are not satisfied from the trust assets and the third party could not and did not need to know the commitment of the trustee spread beyond the trust assets.
If the settlor appoints more than one trustee, the actions and decisions of the trustees are taken jointly. If the trustees are also liable with their own property for their commitments, they assume joint and several liability for joint decisions toward third parties. The co-trustees assume joint and several liability toward the settlor and beneficiary for the breach of obligations arising from the trust.