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Tax4india ›› Indian Law ›› Corporate Law ›› Trusts
Trusts
Reimbursement Of Expenses And Over-Payment
- A trustee may seek reimbursement of all the expenses properly incurred inor about execution of the trust and/or for the protection and benefit oftrust property or the beneficiary. The reimbursement is to be sought fromthe trust property.
- Equally if a trustee makes an over payment to the beneficiary, he can seekreimbursement from the beneficiary's interest in trust property and if suchinterest is insufficient, the trustee is entitled to recover the money fromthe beneficiary personally.
Removal Of The Trustee
The beneficiary can file suit for removal of a trustee if the trustproperty is not held and administered by a proper trustee. The Indiantrusts Act marks out the following individuals as not proper to under takeduties of a trustee
- a person domiciled abroad
- an alien enemy
- a person having an interest in consistent with that of the beneficiary
- a person in insolvent circumstances
- a married woman or a minor (unless the personal law of the beneficiary such as Hindus allows a married woman or a minor).
Where the administration of the trust involves the receipt and custody ofmoney, a beneficiary can file suit to have one more trustee if only onetrustee has been appointed as per the trust instrument.
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