What is the test for assessing damages for breach of trust?

In each instance of a breach of trust, the nature of the breach must be considered and the appropriate manner of loss recovery must be determined. As stated in Law of Trusts in Canada, supra, at 999: However general the principle of compensation, it is crucial to determine exactly what constitutes the breach. First, there is the nature of the transaction which may be impunged. Equity adopts the policy that while gain resulting from a breach is the property of the beneficiary, every loss is the trustee’s own. Similarly, in MacDonald v. Hauer et al., 1976 CanLII 959 (SK CA), [1977] 1 W.W.R. 51 at 72 the court said: Consequently, while the principle applicable to the assessment of the damages arising from the breach is the same in each case, the individual factors which assume significance in the making of that assessment may vary substantially.