Concept of trustee
Introduction
Trust in legal point of view
• Trustee – The person who creates the Trust.
• Trustee – A person who accepts the responsibilities of the Trust.
• Beneficiary – The person / persons of the beneficiary of the Trust.
Who is a trustee
Duties and liabilities
The Indian Trusts Act, 1882 provides for certain duties / liabilities of the Administrator, we will See each one in briefly
- Execution of Trust
The Trustee is required to actually serve the purpose of the trust as stated in the title deed of the Trust. The trustee is also required to follow the instructions of the Trustee of the Trust during the creation of the trust. However, the trustee is not required to follow such guidelines if they are impractical or illegal. - Acquaintance of Trust Property The trustee must know about the details, whereabouts and current status of the trust structure and take appropriate steps to protect the trust property.
3. Not to set up title adverse to the beneficiary
As the trustee has been entrusted with the care of the trust property for the benefit of the beneficiaries, it is also expected and required by the trustee not to suspend any matter against the beneficiary. A good example of this might be, for example, suppose a trustee or a trustee is in a position to use his or her rental property for the benefit of the beneficiaries. The Minister is also entitled to sell such property. It is expected of the trustee not to sell the property to himself or to any of his relatives or friends or a person of the same type, as such action on the part of the Director may be contrary to the beneficiaries, and the trust factor which is the basis of trust established, will cease to exist
4.Take care of the trust property
The trustee is required to provide adequate protection and is required to exercise such discretion in the structure of the trust, as that of the ordinary person may apply to his or her position.
However, the Act provides that the Chief Executive Officer shall not be liable for any loss resulting from the trust property or the benefits arising out of it, if he has exercised such discretion as the average person would have done in his or her place.
- Convert perishable property
If a trust asset is of that type, which over time, continues to deteriorate and continues to lose value, the trustee is required to convert, that is, sell and convert the asset into revenue and use that benefit to the benefit of the beneficiaries. This work is especially needed by the trustee when the trust is created to benefit a few people in a row
- Investment on trust Money
The Act explicitly provides that if a trust asset contains funds, and the funds do not need to be deposited immediately for the benefit of the beneficiaries, the trustee must invest that money in such instruments as provided for in the Act. The Act provides for tools such as pledge notes and other securities of the Central Government; in stock or loans of Railways or other state-owned enterprises; in units issued by the Unit Trust of India, etc.
Rights of Trustee
Certain rights / powers granted to the Trustee under the Indian Trusts Act, 1882. It is discussed in detail in the following sections.
• Right to Deed
The trustee is entitled to hold the title deed or other instrument of trust, as well as the title deed of the trust.
• The right to reimburse costs for trust purposes
The trustee is entitled to reimburse for expenses incurred by the trust, such as expenses incurred through the trust, to secure the trust’s assets, to protect or support the beneficiary, etc.
• The right to collect more payment
If the trustee makes an erroneous payment in excess of the amount required by the beneficiary, the trustee has the right to collect that excess amount from the beneficiary. Such collections may be made in the interest of the beneficiary in the trust of the trustees, and if not, it shall be made even to the beneficiary personally.
• The right to compensation for breach of trust, by the beneficiary
If a person commits a breach of trust and benefits from such breach, the trustee has the right to be held liable by the breach. However, if the trustee himself is guilty of fraud in committing such an offense, then he loses the right to free himself from such a situation.
• The right to seek the opinion of the Court in the management of trust property
The trustee has the right to apply to the Court, in the form of a complaint, to seek the Court’s opinion, advice, opinion or guidance regarding the management of trust assets.
• Right to Pay for Accounts
Once the trustees’ duties have been completed, the trustee has the right to have the trust account hold accounts audited and paid, and where no benefit accrues to any beneficiary under the trust after completing the trustee’s duties, the trustee. and you are entitled to receive approval for that
Conclusion
Trust’s relationship is said to be like glass. If it is broken, it is not the same as before. In the prima facie view of the Indian Trust Act, it can be seen that apart from the legal aspects, the functions and powers provided for in the Act are intended to maintain a soft relationship of trust, in order to maintain trust, and purpose. The basis on which trust is built may be fulfilled. Therefore, here we can conclude with the functions and powers of the Trustee as provided for in the Indian Trust Act, 1882.
Reference
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