law: Indian Trusts Act, 1882 
  15. Care required from trustee 
  A trustee is bound to deal with the trust-property as carefully
  
  as a man of ordinary prudence would deal with such property if it were his own;
  
  and, in the absence of a contract to the contrary, a trustee so dealing is not
  
  responsible for the loss, destruction or deterioration of the trust-property.
  Illustrations 
  (a) A, living in Calcutta, is a trustee for B, living in Bombay.
  
  A remits trust funds to B by bills drawn by a person of undoubted credit in
  
  favor of the trustee as such, and payable at Bombay. The bills are dishonored.
  
  A is not bound to make good the loss.
  (b) A, trustee of leasehold property, directs the tenant to pay
  
  the rents on account of the trust to a banker, B, then in credit. The rents are
  
  accordingly paid to B, and A leaves the money with B only till wanted. Before
  
  the money is drawn out, B becomes insolvent. A, having had no reason to believe
  
  that B was in insolvent circumstances, is not bound to make good the loss.
  (c) A, a trustee of two debts for B, releases one and compounds
  
  the other, in good faith, and reasonably believing that it is for B's interest
  
  to do so. A is not bound to make good any loss caused thereby to B.
  (d) A, a trustee directed to sell the trust-property by auction,
  
  sells the same, but does not advertise the sale and otherwise fails in
  
  reasonable diligence in inviting competition. A is bound to make good the loss
  
  caused thereby to the beneficiary.
  (e) A, a trustee for B, in execution of his trust, sells the
  
  trust-property, but from want of due diligence on his part fails to receive
  
  part of the purchase money. A is bound to make good the loss thereby caused to
  
  B.
  (f) A, a trustee for B of a policy of insurance, has funds in
  
  hand for payment of the premiums. A neglects to pay the premiums, and the
  
  policy is consequently forfeited. A is bound to make good the loss to B.
  (g) A bequeaths certain moneys to B and C as trustees, and
  
  authorizes them to continue trust-moneys upon the personal security of a
  
  certain firm in which A had himself invested them. A dies, and a change takes
  
  place in the firm. B and C must not permit the moneys to remain upon the
  
  personal security of the new firm.
  (h) A, a trustee for B, allows the trust to be executed solely
  
  by his co-trustee C. C misapplies the trust-property. A is personally
  
  answerable for the loss resulting to B.