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0 tracked cards Supplemental - Not MEE July 2026

Trustee breached the duty of loyalty by directing trust business to Trustee's separate company. The trust paid $40,000 more than a reasonable market price, and Trustee's company earned $25,000 in net profit from the transaction.
Which statement best describes monetary remedies?

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The trustee may be required to restore trust losses and disgorge profit made through the breach. The trustee is liable only if every beneficiary proves personal reliance. The trustee's profit belongs to the trustee because it was earned after the breach. The beneficiaries may recover neither loss nor profit unless the trustee intended to steal.

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