VACATION OF OFFICE OF TRUST
INTRODUCTION:
It is well known fact that trust is an obligation and once a trustee has acceptedthe trusteeship, he is bound to act, sice it is obligatory. However, Trust Act,1882
lays down the provision which deals with the discharge of trustee from his office.
DEFINITION OF TRUSTEE:
Black’s Law Dictionary:
“One in whom an estate, interest or power is vested, under an express or impliedagreement to administer or exercise it for the benefit or the use of another”.
POSITION & ROLE OF TRUSTEE:
In a trust agreement a trustee has a very pivotal role to play.
Who may be a trustee?
Sec:10, specifically states about the qualificationa for a trustee.
How a trustee may be appointed?
A trustee may be appointed by a 1) testator 2)court
Acceptance of trust:
Sec:10, clearly states that no person is bound to accept trust . It further states
that all intented trustees also have the right to disclaim the trsut within a
reasonable period of time.
MEANING OF DISCHARGE:
Discharge means to relieve from an obligation.
MODES OF DISCHARGING/VOCATING THE OFFICE OF TRUSTEE:
A person may be discharged from the office or liabilities of trustees in thefollowing modes:
1) Death of trustee
2) Discharge of trustee
DISCHARGE OF TRUSTEE:
SEC:71, lays down following grounds on which a trustee may be discharged:
1)by extinction of trust u/Sec:71
2)On completeion of his duties
3)By prescription in Trust Instrument
4)By replacement of a new trustee
5)By consent of beneficiary
6)By petition to court U/S:72
DISCHARGE BY PETITION :
Trustee may apply to Civil Court by petition for discharge. If courts satisy with the
grounds given by trustee then it will discharge him from office. If court is not
satisfied then it will not discharge him unless another suitable person is found to
replace him.
REMOVAL OF TRUSTEE U/S:73
This sec enumerates the situation in which a trustee may be removed the main
difference between sec:71 and sec:73 is that sec:71 grants the retirement to the
trustee whereas sec:73, trustee will be removed and new appointments are
made.
A trustee may be removed in following cases
a) Disclaim
b) Dies
c) Is absent from pakistan for a continuous period of six months
d) Leaves pakistan for the purpose of residing abroad
e) Insolvent
f) Desires to be discharged from the trust
g) Refusal
h) Becomes unfit or personally incapable to act in the opinion of civil court
APPOINTMENT OF TRUSTEE:
Sec:74, states that whenever such a vaccancy occurs and it is impracticable to
appoint a new trustee, beneficiary may apply to court by petition for the
appointment of new trustee. Different matters have been given in the said section which the court will take into consideration at the time of appointment of new trustee.
VESTING OF TRUST PROPERTY IN NEW TRUSTEE SEC:75
Section states that all trust property shall be vested or transferred to the new
trustee.New shall enjoy the same rights, discretions and powers which were vested in
previous trustee.
SURVIVAL OF TRUSTS U/S:76
The trust would not fail on the death or discharge of one of several trustees and
the trust property keep on passes to the other trustee. The trust deed however can abrogate this rule.
