LAW OF TRUST

Presented By Rizwan Ghani

Submitted To Sir Furqan Siddiqui

CONTENTSDefinition Of Trust

Terminologies

Object Of The Trust

Status Of Unlawful Trust

Resposibility Of Trustee

Rights Of Trustee

Discharge Of Trustee

1. DEFINITION OF TRUST:

◎2. TERMINOLOGIES◎ Author Of The Trust :

The person who declares the confidence is called the “author of the trust”.

◎ Trustee:The person who accepts the confidence is called the “trustee” .

◎ Beneficiary:The person whose benefit is accepted is called the “beneficiary” of the trust.

◎ Trust Property/ Money:The subject-matter of the trust is called “trust-property” or “trust-money”.

The Trust Act 1882 clearly defines the objects for which the trust can be created. Section 4 of the Trust Act elaborates the purposes for which the trust can be

created.

OBJECT OF THE TRUST

Lawful purpose:

A trust can only be created for any lawful purpose.

Unlawful

When it is forbidden by law, if permitted, it would defeat the

provisions of any law,

When it is fraudulent, When it involves or implies injury to the

person or property of another,

“◎ Status of Unlawful trust

◎ Every trust of which the purpose is unlawful is void.

◎ If trust is created for more than one purposes ◎ Where a trust is created for two purposes, of which

one is lawful and the other unlawful and the two purposes cannot be separated, the whole trust is void.

Accomplishment Of Purpose Of Trust According To Instrument Of Trust

To Protect Title Of The Trust Property

Not To Setup Title Adverse To The Interest Of The Beneficiary

To Deal With The Trust Property Carefully

Responsibilities Of The Trustee

Rights Of The Trustee• Right To Have Instrument Of Trust And All

The Documents Of Title Section 31 Of Act

• Right To Reimbursement Of Expenses Overpayments Section 32 Of Act

• Right To Indemnity From Breach Of Trust Section 33 Of Act

• Right To Apply To Court For Opinion In Management Of Trust-propertySection 34 Of Act

• Right To Settlement Of Accounts Section 35 Of Act

DISCHARGE OF TRUSTEE

According to the section 71 of the Trust Act:

By the extinction of the trust.

By the completion of his duties under the trust; (THE TRUST ACT 1882)

By appointment under this Act of a new trustee in his place.

Appointment of new trustee

A new trustee may be appointed in these situations: [sec-73]

(1) Trustee dies

(2) Trustee appointed disclaims

(3) Trustee is absent for more 6 months from a country

(4) Trustee leaves the country for staying aboard

(5)Trustee is declared insolvent

(6) Trustee refuses or becomes unfit to act

(7) Trustee accepts inconsistent trust.

Thanks!