INTRODUCTION
The role of a trustee regarding the trust is of a custodian A trustee is regarded as the servant of the trust and he follows the trust deed (instrument of trust) in carrying out his duties. There are certain rights given by the Trust Act. 1882 to the beneficiary.
The trustee must keep in mind the rights of the beneficiary while performing his duties. Trust Act, of 1882 has conferred vast powers on the trustee which he can exercise in respect of the trust property. All the powers have to be exercised in good faith and in the interest of the beneficiary.
RELEVANT PROVISIONS
Sections 36 to 45 of the Trust Act, of 1882 deal with the powers of the trustee regarding the trust property.
LITERAL MEANING OF TRUSTEE
A trustee is a person who holds the property in trust. He is who in whom an estate, interest, or power is vested, under an express or implied agreement to administer or exercise it for the benefit of a beneficiary or beneficiaries.
WHO MAY BE THE TRUSTEE?
The person holding property in trust can become a trustee. The trustee is one in whom an estate,e interest, or power is vested under an express or implied agreement to administer or exercise it for the benefit or the use of another.
POWERS OF THE TRUSTEE
The powers of a trustee have been given as under;
1. General Authority of a Trustee
A trustee has been given a general authority by this section by virtue of which he may do all acts which are reasonable and proper for the realization, and protection of the trust property and for the support of a beneficiary He can do all acts which are reasonable and proper for the realization, protection or benefit of trust property and for the protection and support of the beneficiary who is not competent to contract (He can not lease the trust-property for more than 21 years without the permission of the Court.
2. Power to Sell in Lots
Where the trustee is empowered to sell any trust property, he may sell the same subject prior charges or not and either together or in lots by private contract and either at one time or at several times, unless the instrument of trust otherwise directs.
3. Power to Buy in and Re-Sell
The trustee making any such sale may insert such reasonable stipulation either as to title or evidence of title or otherwise, in any conditions of sale or contract for sale as he thinks fit He may also buy in the property or any portion of the property at any sale by auction and rescind or vary any contract for sale) and re-sell the property so bought in or as to which the contract is so rescinded, without being responsible to the beneficiary for any loss occasioned thereby.
4. Power to Convey
Where a trustee thinks fit that for the completion of the sale of the trust property, it is necessary to sell out the property, he has the power to convey and dispose of the property.
5. Power to Change of Investment
The trustee may withdraw trust property invested in any security and invest the same on any other security as mentioned in section 20 but if the beneficiary is competent to contract such change shall be made with his prior approval in writing But in the case of an emergency where the consent of all the beneficiaries cannot be obtained, the Court will exercise its jurisdiction by sanctioning certain acts being done by the trustee.
6. Power with regard to Maintenance
It is the power of the trustee to pay the guardians of the minor beneficiary. He may pay to them the whole income of the trust property or any part of that as is necessary for the better maintenance and education, advancement in life, religious worship, and marriage or funeral events of the minor. The trustee can invest the remaining income of the trust property according to section 20 of the Trust Act, of 1882.
7. Power to Give Receipt
A trustee can pass a valid receipt for the money etc. He can pass the receipt for the money received by him. The receipt issued by the trustee shall discharge the payer liabilities with regard to it from all the liabilities with regard to it.
8. Power to Compound
A sole trustee is authorized to accept any composition or any security for any debt or property. He can allow time for
- Payment of any debt
- Compromise
- Compound
- Abandon
- Settle any debt, account, claim, or thing relating to the trust and he can also do anything which is requisite in this regard. The same is the case, where two or Submit to arbitration or more trustees are jointly involved in a trust property.
9. Powers of Surviving Trustees
The existence of a provision in the trust deed for a particular number of trustees and a provision for filling up vacancies in their places does not, in law, necessary or merely by itself debtor the surviving trustees from representing the trust estate.
10. Vesting and Suspension of Power
The authority given to several trustees to act may be exercised by the continuing trustees when one of them dies or disclaims unless there is an indication to the contrary in the trust deed.
CONCLUSION
It is concluded that the Trust Act, of 1882 has conferred vast powers on the trustee which he can exercise in respect of the trust property. All the powers have to be exercised in good faith and in the interest of the beneficiary.
FAQs
Discuss the rights and powers of the trustee with reference to the sale of trust property. Do you think that the law has imposed certain restrictions in this regard? Explain.
(2019-S, 2012-S)
Explain the rights and powers of the trustee related to trust property.
(2016-S, 2014-S)
What are the “Powers of a Trustee” which are given to him by the Trust Act, of 1882?
(2009-S)
