On an appointment of a new trustee the number of trustees may be increased. For example, three beneficiaries each own an undivided one-third of the equitable title in the trust property.
B should sell the houses, and invest the proceeds in accordance with Section Whenever the position of trustee becomes vacant by any reason, such as, non-appointment, death, disclaim, discharge, impracticable, beneficiary may sue to fill such vacancy for the execution of trust.
Control of discretionary power: Insolvent can act as a trustee An insolvent is incapable of acting as a trustee.
Instead of so doing, he retains the money in his hands. It is the duty of trustee to hold scales evenly between the parties having an interest in the trust. He has to possess trust-property. Where trustee is directed to conduct sale, it shall be proceeded within reasonable time period.
A must hold for the benefit of B the difference between the price and value. Appointment of new trustees on death, etc Whenever any person appointed a trustee disclaims, or any trustee, either original or substituted, dies, or is for a continuous period of six months absent from India, or leaves India for the purpose of residing abroad, or is declared an insolvent, or desires to be discharged from the trust, or refuses or becomes, in the opinion of a principal Civil Court of original jurisdiction, unfit or personally incapable to act in the trust, or accepts an inconsistent trust, a new trustee may be appointed in his place by: Where it does not appear that transferor intended to dispose of beneficial interest [Repealed by the Benami Transactions Prohibition Act, 45 of ].
Appointment by Court Whenever any such vacancy or disqualification occurs and it is found impracticable to appoint a new trustee under Section 73, the beneficiary may, without instituting a suit, apply by petition to a principal Civil Court of original jurisdiction for the appointment of a trustee or a new trustee, and the Court may appoint a trustee or a new trustee accordingly.
If he retains money in hand and refrains to invest, he is liable of breach. In addition, where a. Care required from trustee A truste 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.
Provided that, where there is a person competent to contract and entitled at the time to receive the income of the trust-property for his life, or for any greater estate, no such change of investment shall be made without his consent in writing.
The trustee sells the land to a purchaser for a consideration without notice of the trust. Right to reimbursement of expenses Right to be recouped for erroneous overpayment Settler ad His wife A trust was created for the benefit of the settler and his wife.
B, instead of winding up the affairs of tile partnership, retains all the assets in the business. Where a trust is created for benefit or several persons in secession, trustee is bound to stop person in possession of property from any act destructive or injurious to the trust. A trustee is bound to keep clear and complete accounts of trust property.
Chapter:4, Sec of Trust Act, RIGHTS OF TRUSTEE: Vesting of powers in trustee is necessary for proper and efficient discharge of his duties.
Exercise of powers depends upon the nature of a trust. Powers must be exercised for the benefit of a trust and its RIGHTS & POWERS OF a TRUSTEE Author: Amna Iqbal Created Date.
Disclaimer of Trust: Instead of accepting a trust, the intended trustee may, within a reasonable period, disclaim it, and such disclaimer shall prevent the trust property from vesting in him. Duties of Trustee: 1) Duty to execute: It is the duty of the trustee to execute the trust i.e. he must fulfill the purpose of the trust.
The Indian Trusts Act deals with all the matters related to trusts, trustee and thesanfranista.coming to section 10 of Indian Trusts Act states that “Every Person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract.”Thus trustee holds a fiduciary position.
Trustee Duties and Liabilities The trustee manages the trust’s assets, a significant responsibility. The trustee is either appointed by the settlor or the court if the settlor failed to appoint someone, or if the appointed trustees fail. Trust Act, (Law of Trust) Definition: A trust is an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner or declared and accepted of another or of another and the owner.Duties and powers of a trustee in the trust act 1882