Trustee Of A Private Trust - Rights And Powers

No one is bound to accept a trust as trustee. Instead of accepting a trust,the intended trustee can within a reasonable period disclaim it. Such adisclaimer prevents vesting of the trust property in the trustee. Adisclaimer by one of two or more co-trustees vests the trust property inthe other or others, and makes him or them sole trustee or trustees fromthe date of the creation of the trust.

However, a trustee who has accepted the trust cannot after wards renounceit except as under.

• With the permission of a principal civil court of original jurisdiction.
• Consent of the beneficiary if he is of the age of majority, and of soundmind and not disqualified by any law.
• By special power in the instrument of the trust.

Equally a trustee cannot generally delegate his duties either to aco-trustee or a stranger. A delegation of duties can be made only, if:

• Instrument of trust provides for it
• Delegation is in the regular course of business
• The delegation is necessary
• The beneficiary,

being a major of some mind consents to the delegation.

Administration Of the Trust Property By The Trustee

• The trustee is required to fulfil the purpose of the trust and to obey thedirections of the author of the trust unless they have been duly modifiedby the consent of all the beneficiaries.
• In order to do so, the trustee has to acquaint himself as soon as possible, with the nature and circumstances of the trust property and where necessary he is also required to transfer the trust property to himself. He may also reclaim the trust money, invested on insufficient or hazardous security.
• A trustee has to protect the trust property.
• In the absence of a contract a trustee is not liable for the loss,destruction or deterioration of the trust property if in the exercise ofhis duties he has extended due care as a man of ordinary prudence.
• A trustee is required to keep clear and accurate accounts of the trustproperty and is also bound to furnish the beneficiaries at their requestfull and accurate information as to amount and state of the trustproperty.
• Where the trust property consists of money and cannot be appliedimmediately or at an early date to the purpose of the trust the trustee isbound to invest the money on certain government securities prescribed bythe Indian Trusts Act.
• A trustee can apply to the court for its opinion, advice, or direction onissues regarding the management of the trust property if such issues can beadjudicated by the court in a short hearing.