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.
RELEVANT PROVISIONS
Sections 31 to 35 of the Trust Act, of 1882 deal with the rights of the trustee regarding the trust property.
WHO MAY BE THE TRUSTEE?
The person holding property in trust can become a trustee. The trustee is one in whom an estate interest or power is vested under an express or implied agreement to administer or exercise it for the benefit of the use of another.
WHAT IS RIGHT?
A night is an advantage or benefit conferred upon a person by a rule of law.
RIGHTS OF TRUSTEE
1. Rights to Title Deed
In the eye of the law, a trustee is the owner of the trust estate and therefore he is entitled to have in his possession the instrument of trust and all the other documents of title relating solely to the trust property When a trust is created there must be a transfer of property to the trustee of else no trust can come into existence.
2. Right to Reimburse Expenses
It is the right of the trustee to be reimbursed from the trust property. The trustee must be paid all the expenses properly incurred in connection with the execution of the trust or, the realization of preservation, and protection of the trust property. The trustee must also be paid all the expenses incurred expenses to the trustee, these expenses would be recovered from the beneficiary personally.
3. Right to Indemnity
The beneficiary or any other person who gains an advantage from a breach of trust must indemnify the trustee to the extent of the amount received by him under the breach provided that in committing the breach of trust the trustee has not been guilty of any fraud.
4. Right to Seek Court’s Direction
A trustee can obtain an opinion, advice, or direction of a principal Civil Court of original jurisdiction by an application regarding any present question of management or administration of trust property. If the trustee acts according to the opinion of the court, it will be presumed that the trustee has discharged his duties.
5. Right to Settlement of Account
When the duties of a trustee are completed, he is entitled to have the accounts of his administration of the trust property examined and settled, and where nothing is due to the beneficiary under the trust to an acknowledgement in writing to that effect.
6. Right to indemnity from Gainer
A trustee has a very special right, which has been conferred to him by the law that he can give a valid title to a bona fide purchaser from him without notice even though his act of alienation may be one resulting from his breach of trust. Ha has also that right that a trust instrument confers upon him or which is given to him or recognized by equity, which he is to exercise for the benefit of the beneficiaries.
CONCLUSION
To conclude the person holding property in trust can become a trustee (A trustee is the owner of the trust estate and therefore he is entitled to have in his possession, the instrument of trust and all the other documents of title relating solely to the trust property. When a trust is created there must be a transfer of property to the trustee or else no trust can come into existence.
FAQs
Explain the rights and powers of the trustee related to trust property.
(2014-S, 2009-S)
What are the Rights of Trustees under the Trust Act, of 1882?
