Non-liability of Trustee Bare Provisions 25. Non-liability for predecessor’s default. —Where a trustee succeeds another, he is not, as such, liable for the acts or defaults of his predecessor. 26. Non-liability for co-trustee’s default. —Subject to the provisions of sections…
Who may be Trustee? According to Section 10– Every person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract. No one bound…
Kinds of Trusts: Trusts are either private or public. Private Trust: A trust is called a Private Trust when it is constituted for the benefit of one or more individuals who are, or within a given time may be, definitely…
Purpose of creating a Trust Trusts are generally formed or created to fulfil any or more of the following objectives:
Liabilities of Trustee 1. Liability for breach of trust (Section.23) Breach of trust means a breach of any duty imposed on a trustee, by any law for the time being in force. It includes the violation of any direction given…
Duties of Trustee (Section 11 to 22) The Trusts Act has enumerated the duties of the Trustees as follows- To execute the trust: The primary duty of the trustee is to fulfil the ‘purpose’ of the trust and to obey…
Essentials of a Valid Trust The essentials of a valid trust are: Lawful purpose: A trust may be created for any lawful purpose: otherwise the trust is void. Where the objects are mixed up and one is legal and the…
Benefits of Creating a Trust There are many benefits of creating a trust. Some of the most significant ones are- 1. Creation of trust helps in better planning of tax as the author is no more taxed over the trust…