Acknowledgement

I’m so grateful to Almighty Allah, who has made it possible to complete this
assignment successfully. I would like to pay special thankfulness, warmth and
appreciation to the persons below who made my research successful and
assisted me at every point to cherish my goal:
My teacher Ruksana Akter for her vital support and assistance. Her
encouragement made it possible to achieve the goal.
Methodology of the study
The main target of this assignment is to know about the trust act in
Bangladesh. So, at the time of preparing the assignment, I have collected
necessary data from the following sources, which are given below:
1) Primary data
2) Secondary data
1) Primary data: The information, which is collected directly from the field for
a study is called primary data. It includes the following sources of data: - By
questionnaire through the workers and old citizens of the place face to face
conversion with the people who are already visited the place.
2) Secondary data: Different types of secondary data are used for this study.
I have collected secondary data from the following sources-
1. Book
2. Article
3. Research Paper
4. Journal
5. Website
Objectives of the Study:
The main objective of this assignment is to know about the trust act of
Bangladesh.
The Specific objectives of this study are shown below: -
 To know about Trust.
 To know about Classification of trust
 To know about trust sections
 To know about the importance of trust law, etc.
 ABSTRACT

All efforts for defining a trust have remained unfruitful in so far as no complete definition of
it has been produced. According to D. Hanbury, therefore, it is better to describe what a
trust is and to compare the idea with other like concepts in order to understand its nature.
A trust may be described as an equitable obligation binding a person (called Trustee) to deal
with the property over which he has control (called the trust property) for the benefit of
persons (called the beneficiaries or cestuis que trust) of whom he may himself be one and
anyone of whom may enforce the obligation.

Keywords: Trust, Trustee, Trustor, Beneficiary, Charitable Trust, Private Trust, Liability .
 Index

SL.
Context Page
NO
1 Introduction 5
2 Definition of Trust 6
3 Ingredient of a valid trust 6
4 Object of trust 6
5 Purposes of trust 6
6 Classification of Trust 7
7 Advantages of Trust 8
8 Disadvantages of trust 9
9 How a trust can be made 10
10 The Duties of the trustee 13
11 Liabilities of trustees 15
12 Non-liabilities of trustees 16
13 Right of trustees 17
14 Powers of trustees 18
15 Disabilities of trustees 21
16 Rights of the beneficiaries 22
17 Vacating the office of trustees 24
18 The Extinction of a trust 26
19 Charitable trust 26
20 Distinction between Charitable and Private trust 28
21 Distinction between Trust and Contract 30
22 Charitable trust 26
23 Distinction between charitable and Private Trust 28
24 Distinction between Trust and Contract 30
25 Distinction between Trust and Bailment 31
26 Conclusion 32
 Introduction

A trust is produced by a 'settlor', who moves some (or all) of their property to a 'trustee'.
The trustee will then hold that Trust property for the advantage of the 'recipients'. This can
consist of cash, financial investments, land or structures. It is very important to understand
that although the trustee has legal title to the Trust property, the recipient has fair title to
the Trust property. Suggesting that when the regards to the Trust are satisfied, the property
ends up being lawfully owned by the recipient. The trustee will owe a 'fiduciary
responsibility' to the recipients who are the 'useful' owners of the Trust property. Which
merely implies that the trustee holds a position of Trust in relation to the recipients and the
trustee should act in the recipients finest interest.

An individual who will get the advantage of property from an estate or trust through the
right to get a bequest or to get earnings or trust principal over a time period. A type of
ownership in specific states, referred to as neighborhood property states, under which
property obtained throughout a marital relationship is presumed to be owned collectively.
Just a little number of states are neighborhood property states, and the guidelines can vary
substantially in these states. The renunciation or rejection to accept a present or bequest or
the invoice of insurance coverage profits, retirement advantages, and the like under a
recipient classification in order to enable the property to pass to alternate takers. State laws
dealing with disclaimer might vary, and some trusts and wills may consist of express
arrangements governing exactly what occurs to properties or interests that are disclaimed.

If more than one individual contributes or produces property to a trust, each individual is a
grantor with regard to the part of the trust property attributable to that individual's
contribution other than to the level another individual has the power to withdraw that part
or withdraw. Contrast with the usage of the term "grantor trust" to suggest a trust the
earnings of which is taxed to the individual thought about the "grantor" for earnings tax
functions. The interest in property owned by a life recipient (likewise called life occupant)
with the legal right under state law to utilize the property for his or her life time, after which
title totally vests in the remainderman (the individual called in the deed, trust arrangement,
or other legal file as being the supreme owner when the life estate ends). A trust is a plan
which lets an individual or business hold property or properties for the advantage of others.
Definition of Trust:

According to Section 3 of Trust Act,1882: A trust is a transfer of property either movable or

immovable by the settlor to trustee for the benefit of the person related to settlor or for the
benefit of public at large.

Ingredient of a valid trust:

1. Settelor
2. Trustee
3. Beneficiary
4. Property
5. Lawful object
6. Instrument

Object of Trust:

1. Privacy
2. Avoid large tax amount / Saving tax
3. Charity
4. To control spendthrift
5. To protecting assets.
6. Managing assets.
7. Avoiding Probate.

Purposes of Trust (Section 4):

A trust may be created for any lawful purpose. The purpose of a trust is lawful unless it is-

(a) Forbidden by law, or
(b) Is of such a nature that, if permitted, it would defeat the provisions of any law, or
(c) Is fraudulent, or
(d) Involves or implies injury to the person or property of another, or
(e) The Court regards it as immoral or opposed to public policy.
 Classification of Trust:

Classification of Trust

Express Trust:
By Act of Parties
An express trust is a trust created "in express terms, and usually in
By operation of Law According to object
writing, as distinguished from one inferred by the law from the conduct or dealings of the
parties.1 Property is transferred by a person (called a trustor, settlor, or grantor) to a
transferee (called
Express the trustee), who
Implied holds the property
Resulting for the benefit
Constructive of one or more
Private Public
persons, called beneficiaries. The trustee may distribute the property, or the income from
that property, to the beneficiaries. Express trusts are frequently used in common law
Executed as methods of wealth preservation or enhancement.
jurisdictions

Implied
Executory Trust: An implied trust is a trust inferred by operation of law. It is imposed
by law to situations either by presuming an intention of the participants to create a trust, or
simply
Publicbecause of the facts at hand. Two types of implied trusts are constructive and
resulting trusts. A resulting trust arises from the conduct of the parties. A constructive trust
is Private
an equitable remedy that enables plaintiffs to recover property or damages from
defendants who would otherwise be unjustly enriched.2

Resulting Trust: A resulting trust (from the Latin 'resalire' meaning 'to jump back') is
the creation of an implied trust by operation of law, where property is transferred to
someone who pays nothing for it; and then is implied to have held the property for benefit
of another person. The trust property is said to "result" back to the transferor (implied

1
 Black's Law Dictionary, p. 1354 (5th ed. 1979).
2
https://definitions.uslegal.com/i/implied-trust
settlor). In this instance, the word 'result' means "in the result, remains with", or something
similar to "revert" except that in the result the beneficial interest is held on trust for
the settlor. Not all trusts whose beneficiary is also the settlor can be called resulting trusts.
In common law systems, the resulting trust refers to a subset of trusts which have such
outcome; express trusts which stipulate that the settlor is to be the beneficiary are not
normally considered resulting trusts.3

The beneficial interest results in the settlor, or if the settlor has died the property forms part
of the settlor's estate (intestacy). It remains with the person and Re Vandervell case has
proven that only the Beneficial interest disappears but not the beneficiary interest.

Executed Trust: Completely constituted trust that is final in defining and limiting the
associated estates and interests, and is enforceable by its beneficiaries without any
additional instructions or actions of the trustor. Also called completely constituted trust or
perfect trust.

Executory Trust: Incompletely constituted or partial trust that requires additional

instructions or actions of the trustor for its execution. Also called imperfect trust or
incompletely constituted trust.

Constructive Trust: A constructive trust is an equitable remedy resembling

a trust (implied trust) imposed by a court to benefit a party that has been wrongfully
deprived of its rights due to either a person obtaining or holding a legal property right which
they should not possess due to unjust enrichment or interference, or due to a breach
of fiduciary duty, which is intercausative with unjust enrichment and/or property
interference.

Private Trust: Private trust is a trust created for the benefit of individuals other than
a public or charitable purpose. It is created for the financial benefit of one or more
designated beneficiaries rather than for the public benefit.

Public Trust: Public trusts are created to benefit larger numbers of people, or, at
least, are created with wider benefits in mind. The most common public trusts are
charitable trusts, whose holdings are intended to support religious organizations,
to enhance education, or to relieve the effects of poverty and other misfortunes. Such trusts
are recognized for their beneficial social impact and are given certain privileges, such
as tax exemption. Other public trusts are not considered charitable and are not so
privileged. These include holdings for public groups with a common interest, such as
a political party, a professional association, or a social or recreational organization. 4

3
Gardner (Secret trust), An Introduction to the Law of Trusts
4
https://www.britannica.com/topic/prize-law
 A dvantage s o f Trus ts 5

The following are some of the advantages of setting up a trust:

Creditor Protection – Assets held in trust are usually protected from creditors of the
beneficiaries, or the trustees personally
Protection Against Relationship Property Claims – If you give personal assets to your
children during your life or in your will, those assets may, in certain circumstances, become
available to their partners under the Property (Relationships) Act 1976. However, if your
assets are owned by a trust, or are given to your trust on death, your children can continue
to receive the benefit of those assets but the assets do not form part of their personal
property, and therefore cannot be subject to claims by your children’s partners.
Further, if assets are transferred into a family trust prior to entering into a relationship, the
assets in the trust are less likely to be subject to a relationship property claim at the end of
the relationship.
Protecting Property from/for Beneficiaries – You may be reluctant to simply give your
assets to your children during your life or on death if you have concerns about their ability
to manage their financial affairs. If you give your assets to a family trust, then the trust can
provide a vulnerable child with income and/or capital to meet their cash requirements as
they arise. This can protect the long-term value of your family’s assets.
Protecting Assets for Future Generations from Potential Tax Law Changes – Family trusts
may provide protection against various forms of wealth tax that may be introduced in the
future, such as death duties or inheritance tax.
Reducing or Preventing Claims Against your Estate – The Courts can effectively rewrite your
Will under the Family Protection Act 1955 if it considers that members of your family have
been disadvantaged by its provisions. However, the Court cannot rewrite your trust for
Family Protection Act purposes.
General Flexibility to Deal with Law Changes – Modern trust deeds normally allow limited
rights of variations to deal with changes in the law.
Confidentiality – Family trusts are not publicly registered and therefore can be kept
confidential.

Di s advantage s o f Trus ts 6

The following are a number of the disadvantages of having a family trust:

Loss of Ownership of Assets – If you transfer your personal assets to a trust, then the
trustees of that trust will control the assets. Although you can retain some control by
5
https://www.lawlink.co.nz/article/family-trusts-advantages-disadvantages-trust/
6
https://www.lawlink.co.nz/article/family-trusts-advantages-disadvantages-trust/
holding the power to appoint and/or remove trustees, or even by being a trustee yourself, it
is important to remember that assets you transfer to the trust are no longer your own. If
you continue to treat the assets as your own, any trust could be open to challenge as a
sham.
Additional Administration – If you establish a trust, you need to allow for the time and cost
involved with meeting the trust’s annual accounting and administrative requirements.
Cost of Formation of the Trust/Transfer of Assets – There are costs involved with
establishing a trust. These will depend on the complexity of your trust and the nature of the
assets to be transferred.
Future Law Changes – Possible changes to legislation of trust law may remove or effect
some of the original objectives for the trust formation.

How a trust can be made:

Testamentary Trust7: A testamentary trust (sometimes referred to as a will

trust or trust under will) is a trust which arises upon the death of the testator, and which is
specified in his or her will. A will may contain more than one testamentary trust, and may
address all or any portion of the estate.
Testamentary trusts are distinguished from inter vivos trusts, which are created during the
settlor's lifetime.
There are four parties involved in a testamentary trust:

 the person who specifies that the trust be created, usually as a part of his or her will,
but it may be set up in abeyance during the person's lifetime. This person may be called
the grantor or trustor, but is usually referred to as the settlor;
 the trustee, whose duty is to carry out the terms of the will. He or she may be named
in the will, or may be appointed by the probate court that handles the will;
 the beneficiary(s), who will receive the benefits of the trust;
 Although not a party to the trust itself, the probate court is a necessary component
of the trust's activity. It oversees the trustee's handling of the trust.

Non-Testamentary Trust8: Non-testamentary trusts are called living trusts or inter

vivos trusts. These are trusts created during the life of the grantor; they are effective when
created or upon the occurrence of a specific event stated within the trust document.
Individuals often create non-testamentary trusts to pass property or money to beneficiaries
7
 "Archived copy". Archived from the original on 2017-01-07. Retrieved 2017-01-07.
8
https://info.legalzoom.com/non-testamentary-trust-24209.html
and to avoid the probate process. The probate process can be costly and time-consuming as
it can tie up property and money for a year or more.

Registration:

Immovable property:

i) Under Section 17 of Registration Act 1908

ii) Under Succession Act 1925 to follow the will.

Movable property:

i) Trustor can declare efforts side or by transferring the ownership of the property to the
trustee.

ii) Registration is not compulsory

iii) Providing possession is compulsory accordance to Section 5 of Trust Act 1882.

When a trust created: (Section 6)

i) Trust will be created when the trustor has the intension.

ii) There is a purpose of the trust.

iii) There will be beneficiary.

iv) There will be a trust property.

v) Transfer of property.

vi) Certainty of words.

Subject matter of Trust: (Section 8)

i) Trust property must be transferable to beneficiary.

Whom a create Trust: (section 7 )

i) Every person competent to create contract can trust

ii) With permission of a principle of a civil court of original jurisdiction or on behalf of a

minor.
iii) He must have ownership of the property.

Person who maybe beneficiary: (section 10)

i) Trustee must be competent person.

ii) A person domiciled in abroad, the crown or the state can’t be trustee.

iii) An align enemy cannot be a trustee.

iv) A person having a interest in consistent with that of the beneficiary.

v) Beneficiary cannot be a trustee.

vi) Bankrupt and insolvent person cannot be a trustee.

Duties of Trustee:

Trustee to execute trust(Section 11)

 The trustee is bound to fulfill the purpose of the trust, and to obey the directions of
the author of the trust given at the time of its creation, except as modified by the
consent of all the beneficiaries being competent to contract.
 Where the beneficiary is incompetent to contract, his consent may, for the purposes
of this section, be given by a principal Civil Court of original jurisdiction.
 Nothing in this section shall be deemed to require a trustee to obey any direction
when to do so would be impracticable, illegal or manifestly injurious to the
beneficiaries.

Trustee to inform himself of state of trust-property(Section 12) 

 A trustee is bound to acquaint himself, as soon as possible, with the nature and
circumstances of the trust-property; to obtain, where necessary, a transfer of the
trust-property to himself; and (subject to the provisions of the instrument of trust)
to get in trust-moneys invested on insufficient or hazardous security.

Trustee to protect title to trust-property(Section 13)

 
  A trustee is bound to maintain and defend all such suits, and (subject to the
provisions of the instrument of trust) to take such other steps as, regard being had
to the nature and amount or value of the trust-property, may be reasonably
requisite for the preservation of the trust-property and the assertion or protection of
the title thereto.

Care required from trustee(Section 15)

 
 A trustee is bound to deal with the trust-property as carefully as a man of ordinary
prudence would deal with such property if it were his own; and, in the absence of a
contract to the contrary, a trustee so dealing is not responsible for the loss,
destruction or deterioration of the trust-property.
Conversion of perishable property(Section 16)
 
 Where the trust is created for the benefit of several persons in succession, and the
trust-property is of a wasting nature or a future or reversionary interest, the trustee
is bound, unless an intention to the contrary may be inferred from the instrument of
trust, to convert the property into property of a permanent and immediately
profitable character.

Trustee to be impartial(Section 17)

 
 Where there are more beneficiaries than one, the trustee is bound to be impartial,
and must not execute the trust for the advantage of one at the expense of another.
 Where the trustee has a discretionary power, nothing in this section shall be deemed
to authorise the Court to control the exercise reasonably and in good faith of such
discretion.

Trustee to prevent waste(Section 18)

 
 Where the trust is created for the benefit of several persons in succession and
one of them is in possession of the trust-property, if he commits, or threatens
to commit, any act which is destructive or permanently injurious thereto, the
trustee is bound to take measures to prevent such act.

Accounts and information(Section 19)

 
  A trustee is bound (a) to keep clear and accurate accounts of the trust-property, and
(b), at all reasonable times, at the request of the beneficiary, to furnish him with full
and accurate information as to the amount and state of the trust-property.

Investment of trust-money(Section 20)

 
 Where the trust-property consists of money and cannot be applied immediately or
at an early date to the purposes of the trust, the trustee is bound (subject to any
direction contained in the instrument of trust) to invest the money on the following
securities, and on no others:-
 
(a) in promissory notes, debentures, stock or other securities of the Government:
Provided that securities, both the principal whereof and the interest whereon shall
have been fully and un-conditionally guaranteed by the Government, shall be
deemed, for the purposes of this clause, to be securities of  the Government;
(c) in stock or debentures of, or shares in, Companies the interest whereon shall
have been guaranteed by the Government:
(d) in debenture or other securities for money issued under the authority of any
Bangladesh Act, or on behalf of any municipal body or port trust or city improvement
trust

Liabilities of trustees

Liability for breach of trust(Section 23)

 
 Where the trustee commits a breach of trust, he is liable to make good the loss
which the trust-property or the beneficiary has thereby sustained, unless the
beneficiary has by fraud induced the trustee to commit the breach, or the
beneficiary, being competent to contract, has himself, without coercion or undue
influence having been brought to bear on him, concurred in the breach, or
subsequently acquiesced therein, with full knowledge of the facts of the case and of
his right as against the trustee.

A trustee committing a breach of trust is not liable to pay interest except in the
following cases:-
 
 where he has actually received interest:
 where the breach consists in unreasonable delay in paying trust-money to the
beneficiary:
 where the trustee ought to have received interest, but has not done so:
 where he may be fairly presumed to have received interest.
 
He is liable, in case (a), to account for the interest actually received, and, in cases (b), (c)
and (d), to account for simple interest at the rate of six per cent. per annum, unless
Court otherwise directs.
 
 where the breach consists in failure to invest trust-money and to accumulate the
interest or dividends thereon, he is liable to account for compound interest (with
half-yearly rests) at the same rate.
 where the breach consists in the employment of trust-property or the proceeds
thereof in trade or business, he is liable to account, at the option of the beneficiary,
either for compound interest (with half-yearly rests) at the same rate, or for the net
profits made by such employment.

No set-off allowed to trustee(Section 24)

 
 A trustee who is liable for a loss occasioned by a breach of trust in respect of one
portion of the trust-property cannot set-off against his liability a gain which has
accrued to another portion of the trust-property through another and distinct
breach of trust.

Several liability of co-trustees(Section 27)

 Where co-trustees jointly commit a breach of trust, or where one of them by his
neglect enables the other to commit a breach of trust, each is liable to the
beneficiary for the whole of the loss occasioned by such breach.

Liability of trustee where beneficiary’s interest is forfeited to the Government(Section 29)

 
 When the beneficiary's interest is forfeited or awarded by legal adjudication to the
Government, the trustee is bound to hold the trust-property to the extent of such
 interest for the benefit of such person in such manner as the Government may direct
in this behalf.

Non Liabilities of Trustees

Non-liability for predecessor’s default(Section 25)

 
 Where a trustee succeeds another, he is not, as such, liable for the acts or defaults of
his predecessor.

Non-liability for co-trustee’s default(Section 26)

 Subject to the provisions of sections 13 and 15, one trustee is not, as such, liable for
a breach of trust committed by his co-trustee:
 
Provided that, in the absence of an express declaration to the contrary in the instrument
of trust, a trustee is so liable,-

 where he has delivered trust-property to his co-trustee without seeing to its proper
application:
 
 where he allows his co-trustee to receive trust-property and fails to make due
enquiry as to the co-trustee's dealing therewith or allows him to retain it longer than
the circumstances of the case reasonably require:
 
 where he becomes aware of a breach of trust committed or intended by his co-
trustee, and either actively conceals it or does not within a reasonable time take
proper steps to protect the beneficiary's interest.

Non-liability of trustee paying without notice of transfer by beneficiary(Section 28)

 
 When any beneficiary's interest becomes vested in another person, and the trustee,
not having notice of the vesting, pays or delivers trust-property to the person who
would have been entitled thereto in the absence of such vesting, the trustee is not
liable for the property so paid or delivered.

Right of Trustees
Right to title-deed (Section 31)

 A trustee is entitled to have in his possession the instrument of trust and all the
documents of title (if any) relating solely to the trust-property.

Right to reimbursement of expenses and indemnity (Section 32)

 Every trustee may reimburse himself, or pay or discharge out of the trust-property,
all expenses properly incurred in or about the execution of the trust, or the
realisation, preservation or benefit of the trust-property, or the protection or
support of the beneficiary.
 If he pays such expenses out of his own pocket, he has a first charge upon the trust-
property for such expenses and interest thereon; but such charge (unless the
expenses have been incurred with the sanction of a principal Civil Court of original
jurisdiction) shall be enforced only by prohibiting any disposition of the trust-
property without previous payment of such expenses and interest.
 If the trust-property fail, the trustee is entitled to recover from the beneficiary
personally on whose behalf he acted, and at whose request, expressed or implied,
he made the payment, the amount of such expenses.

Right to indemnity from gainer by breach of trust (Section 33)

 A person other than a trustee who has gained an advantage from a breach of trust
must indemnify the trustee to the extent of the amount actually received by such
person under the breach; and where he is a beneficiary the trustee has a charge on
his interest for such amount.

Right to apply to Court for opinion in management of trust-property(Section 34)

 Any trustee may, without instituting a suit, apply by petition to a principal Civil Court
of original jurisdiction for its opinion, advice or direction on any present questions
respecting the management or administration of the trust-property other than
questions of detail, difficulty or importance, not proper in the opinion of the Court
for summary disposal.
 A copy of such petition shall be served upon, and the hearing thereof may be
attended by, such of the persons interested in the application as the Court thinks fit.
 The trustee stating in good faith the facts in such petition and acting upon the
opinion, advice or direction given by the Court shall be deemed, so far as regards his
own responsibility, to have discharged his duty as such trustee in the subject-matter
of the application.
 The costs of every application under this section shall be in the discretion of the
Court to which it is made.

Right to settlement of accounts(Section 35)

  When the duties of a trustee, as such, are completed, he is entitled to have the
accounts of his administration of the trust-property examined and settled; and,
where nothing is due to the beneficiary under the trust, to an acknowledgement in
writing to that effect.

Powers of Trustee:

General Power(Section 36) , Statutory Powers (section 37 - section 43) , vesting power
(section 44) , Abolishment of Power (section 45).

General power may enforce in two ways:

i) Conferred by the trust Act (General Power)

ii) Conferred by the trust Instrument (Special power)

General Power may exercise in 5 ways:

1. Reasonable and proper Acts : A trustee may do all acts which are reasonable and proper
for the realisation, protecting or benefit of the trust property. A trustee has a general
authority to do an act with view to the protection or support of a beneficiary who is not
competent to contract. Trustee cannot spend the money on unnecessary ornamental
improvements [Easton v. Pratt, 2 H & C 676].

2. Authority of a trustee may be general or special : As to the general authority, it is

derived from the law and consists of the powers incidental to the office of trustee whereas
the special powers are such which are conferred on the trustee by the settelor himself
expressly in the instrument creating the trust.

3. Power of lease : The leases for a long term without permission of a Court are not void as
being prohibition and illegal per se, though they are certainly avoidable at the option of the
cesti que trust.

4. Power to purchase and sell trust property : A trustee has no right to sell the trust
property unless the deed of trust confers such power [Manikka Narainbachari v M.V.
Ramasubbier].

5. Power to mortgage, exchange or partition : A trustee is not competent to mortgage,

exchange or partition a trust property unless expressly provided under the instrument or
deed.

Statutory powers of trustees : The statutory powers of trustee as given in the Trust Act,
1882 are as follows
Power to sell in lots, and either by public auction or private contract(Section 37)
 
 Where the trustee is empowered to sell any trust-property, he may sell the same
subject to prior charges or not, and either together or in lots, by public auction or
private contract, and either at one time or at several times, unless the instrument of
trust otherwise directs.

Power to sell under special conditions:

Power to buy in and re-sell(Section 38)

 The trustee making any such sale may insert such reasonable stipulations either as to
title or evidence of title,
 otherwise, in any conditions of sale or contract for sale, as he thinks fit
 and may also buy in the property or any part thereof at any sale by auction,
 and rescind or vary any contract for sale, and re-sell the property so bought in,
 as to which the contract is so rescinded, without being responsible to the
beneficiary for any loss occasioned thereby.

Power to convey(Section 39)

 For the purpose of completing any such sale, the trustee shall have power to convey
or otherwise dispose of the property sold in such manner as may be necessary.

Power to vary investments(Section 40)

 If the beneficiary is competent to contract trustee can change investment of the

trust property
 Trustee may invest the trust property to any company and can also change the
investment.
 Trustee has the power to sell the property and invest the sale proceeds on any of the
authorised securities, bond.

Power to apply property of minors, etc., for their maintenance, etc.(Section 41)

 Where any property is held by a trustee in trust for a minor, such trustee may, at his
discretion, pay to the guardians (if any) of such minor.
  Otherwise apply for or towards his maintenance or education or advancement in
life, or the reasonable expenses of his religious worship, marriage or funeral, etc.
 Thus, where the income of the trust property is sufficient for the minor's
maintenance or education or advancement in life, or the reasonable expenses of his
religious worship, marriage or funeral , the trustee may, with the permission of a
principle Civil Court of original jurisdiction, but not otherwise, apply the whole or any
part of such property for or towards such maintenance, education, advancement or
expenses.

Power to give receipts(Section 42)

 Any trustees or trustee may give a receipt in writing for any money, securities or
other moveable property payable, transferable or deliverable to them or him by
reason, or in the exercise, of any trust or power; and, in the absence of fraud, such
receipt shall discharge the person paying, transferring or delivering the same
therefrom, and from seeing to the application thereof, or being accountable for any
loss or misapplication thereof.

Power to compound, etc.(Section 43)

 
 Two or more trustee acting together may, if and as they think fit,-

 accept any composition or any security for any debt or for any property claimed;
 allow any time for payment of any debt;
 compromise, compound, abandon, submit to arbitration or otherwise settle any
debt, account, claim or thing whatever relating to the trust; and,
 for any of those purposes, enter into, give, execute and do such agreements,
instruments of composition or arrangement, releases and other things as to
them seem expedient, without being responsible for any loss occasioned by any
act or thing so done by them in good faith.

Power to several trustees of whom one disclaims or dies(Section 44)

  
 When an authority to deal with the trust-property is given to several trustees and
one of them disclaims or dies, the authority may be exercised by the continuing
trustees, unless from the terms of the instrument of trust it is apparent that the
authority is to be exercised by a number in excess of the number of the remaining
trustees.
Suspension of trustee’s powers by decree(Section 45)
 
 Where a decree has been made in a suit for the execution of a trust, the trustee
must not exercise any of his powers except in conformity with such decree, or with
the sanction of the Court by which the decree has been made, or, where an appeal
against the decree is pending, of the Appellate Court.

Disabilities of Trustees

Trustee cannot renounce after acceptance(Section 46)

 A trustee who has accepted the trust cannot afterwards renounce it except:

 With the permission of Principle Civil Court of original jurisdiction

 If the beneficiary competent to contract
 By virtue of a special power in the instrument of trust

Trustee cannot delegate(Section 47)

 A trustee cannot delegate his office or any of his duties either to a co-trustee or to a
stranger, unless
 the instrument of trust so provides
 the delegation is in the regular course of business
 the delegation is necessary
 the beneficiary, being competent to contract, consents to the delegation.

Explanation - The appointment of an attorney or proxy to do an act merely

ministerial and involving no independent discretion is not a delegation within the
meaning of this section.

Co-trustees cannot act singly(Section 48)

 When there are more trustees than one, all must join in the execution of the trust,
except where the instrument of trust otherwise provides.

Control of discretionary power(Section 49)

 Where a discretionary power conferred on a trustee is not exercised reasonably and in

good faith, such power may be controlled by a principal Civil Court of original
jurisdiction.

Trustee may not charge for services(Section 50)

  A trustee has no right to remuneration for his trouble, skill and loss of time in
executing the trust except :
 Where the trust instrument expressly directs or permits him to receive such
remuneration.
 Where he has, before accepting the trust, contracted for the same with the
beneficiaries who are sui juris.
 Where the trust is before the court, and he has, before accepting the trust,
expressly stipulated for remuneration.

Trustee may not use trust-property for his own profit(Section 51)

 No trustee may not use or deal with the trust-property for his own profit or for any
other purpose unconnected with the trust.

Trustee for sale or his agent may not buy(Section 52)

 No trustee whose duty it is to sell trust-property, and no agent employed by such

trustee for the purpose of the sale, may, directly or indirectly, buy the same or any
interest therein, on his own account or as agent for a third person.

Trustee may not buy beneficiary’s interest without permission(Section 53)

 No trustee, and no person who has recently ceased to be a trustee, may, without the
permission of a principal Civil Court of original jurisdiction,

Exceptions: i) If the trustee gives a fancy price which is more than market price for the trust
property.
ii) When the offer to sale proceeds the Cestui que trust and trustee gives market price
keeping him at arm's length.
iii) When the sale in by public auction.
iv) When the trustee is only a leave trustee, or has retired from the trust for a considerable
time.

Co-trustees may not lend to one of themselves(section 54)

 A trustee or co-trustee whose duty it is to invest trust-money on mortgage or personal

security must not invest it on mortgage by, or on the personal security of, himself or
one of his co-trustees.

The Rights of the Beneficiaries

Rights to rent and profits(Section 55)

 The beneficiary has subject to the provisions of the instrument of trust, a right to the
rents and profits.

Rights to specific execution(Section 56)

 The beneficiary is entitled to have the intention of the author of the trust specifically
executed to the extent of the beneficiary's interest:
 Right to transfer of possession - Where there is only one beneficiary and he is
competent to contract or where there are several beneficiaries and they are
competent to contract and all of one mind, he or they may require the trustee
to transfer the trust property to him or them, or to such person as he or they
may direct.

Right to inspect and take copies of instrument of trust accounts, etc(Section 57)

 The beneficiary has a right, as against the trustee and all persons claiming under him
with notice of the trust, to inspect and take copies of the instrument of trust, the
documents of title relating solely to the trust-property, the accounts of the trust-
property and the vouchers (if any) by which they are supported, and the cases
submitted and opinions taken by the trustee for his guidance in the discharge of his
duty.

Right to transfer beneficial interest(Section 58)

 The beneficiary, if competent to contract, may transfer his interest, but subject to the
law for the time being in force as to the circumstances and extent in and to which he
may dispose of such interest:

 Provided that when property is transferred or bequeathed for the benefit of a

married woman, so that she shall not have power to deprive herself of her
beneficial interest, nothing in this section shall authorise her to transfer such
interest during her marriage.

Right to sue for execution of trust(Section 59)

 Where no trustees are appointed

 all the trustees die, disclaim, or are discharged,
 where for any other reason the execution of a trust by the trustee is or becomes
impracticable, the beneficiary may institute a suit for the execution of the trust, and
 the trust shall, so far as may be possible, be executed by the Court until the
appointment of a trustee or new trustee.

Right to proper trustees(Section 60)

 The beneficiary has a right (subject to the provisions of the instrument of trust) that
the trust-property shall be properly protected and held and administered by proper
persons and by a proper number of such persons.
Explanation I - The following are not proper persons within the meaning of this
section:-
i) A person domiciled abroad
ii) an alien enemy
iii) a person having an interest inconsistent with that of the beneficiary
iv) a person in insolvent circumstances
v) a married woman and a minor.

Explanation II - When the administration of the trust involves the receipt and custody of
money, the number of trustees should be two at least.

Right to compel to any act of duty(Section 61)

 The beneficiary has a right that his trustee shall be compelled to perform any
particular act of his duty as such, and restrained from committing any contemplated or
probable breach of trust.

Right in case of blended property(Section 66)

 Where the trustee wrongfully mingles the trust-property with his own, the beneficiary
is entitled to a charge on the whole fund for the amount due to him.

Vacating the office of trustee :

Office how vacated(section 70)

 The office of a trustee is vacated by his death or by his discharge from his office.

Discharge of trustee (section 71)

 By the extinction of the trust

 By the completion of his duties under the trust
 By such means as may be prescribed by the instrument of trust
  By appointment of new trustee.
 With the consent of trustee and beneficiary.
 By the court.

Petition to be discharged from trust (section 72)

 Trustee may apply to the Principle Civil Court of original jurisdiction.

 If courts find that there is sufficient reason for discharge.
 Court shall not discharge him, unless a proper person can be found to take his place.

Appointment of new trustees on death, etc. (section 73)

 Whenever any person appointed a trustee disclaims or any trustee either original or
substituted dies.
 For a continuous period of six months absent from country or leaves for the purpose
of residing abroad or is declared an insolvent or desires to be discharged from the
trust or refuses or becomes in the opinion of a principle Civil Court of original
jurisdiction unfit or personally incapable to act in the trust or accepts an inconsistent
trust,
 a new trustee may be appointed in his place if settelor dies the person nominated for
that purpose by the instrument of trust.
 On an appointment of a new trustee the number of trustees may be increased.

Appointment by court (section 74)

When beneficiary apply to court for applying new trustee, the Court may appoint may
appoint new trustee.

Rule for selecting new trustees -

i) to the wishes of the author of the trust as expressed in or to be inferred from the instrument
of trust.

ii) to the wishes of the person if any empowered to appoint new trustees.

iii) to the question whether the appointment will promote or impede the execution of the trust

iv) where there are more beneficiaries than one to the interests of all such beneficiaries.

Vesting of trust property in new trustees (section75)

 Whenever any new trustee is appointed, all the trust property for the time being vested
in the surviving or continuing trustees or trustee.
 In the legal representative of any trustee shall become vested in such new trustee.

Power of new trustee - Every new trustee appointed, shall have the same powers as the
originally nominated a trustee by the author of the trust.
Survival of trust (section 76)

 On the death or discharge of one of several co-trustees the trust survives and the trust
property passes to the others unless the instrument of trust expressly declares
otherwise.

The Extinction of Trust

Trust how extinguished(Section 77)

 A trust is extinguished

 when its purpose is completely fulfilled; or

 when its purpose becomes unlawful; or
 when the fulfillment of its purpose becomes impossible by destruction of the trust-
property or otherwise; or
 when the trust, being revocable, is expressly, revoked.

Revocation of trust(Section 78)

 
A trust created by will may be revoked at the pleasure of the testator.
 
 A trust otherwise created can be revoked only-

 where all the beneficiaries are competent to contract - by their consent;

 where the trust has been declared by a non-testamentary instrument or by word of
mouth - in exercise of a power of revocation expressly reserved to the author of
the trust; or
 where the trust is for the payment of the debts of the author of the trust, and has
not been communicated to the creditors - at the pleasure of the author of the trust.

Charitable Trust

Definition:
A charitable trust is an irrevocable trust established for the charitable purposes. It is an
instrument for the advancement of the property for social purposes. In other words a trust
which assets and income with benefit the general public or a large group of the general
people.

Characteristics of a charitable trust:

1) Social extensiveness:

A charitable trust should be for people at large not for specific people. A charitable trust
should be made for social purpose and it can also form for a unspecified amount of people.
For example: A trust property for school, college, Mosque.

2) Public Utility:

The objects of the charitable trust should be welfare for the public at large. The surplus of the
property must use for the welfare for the people at large.

3) Perpetuity:

A charitable trust shouldn’t be for a bounded or limited amount of time. A charitable trust is
permanent in nature. If the trust is not permanent in sense but it should be valid for the time
up to fulfillment of object.

Classification of charitable trust:

1) Trust for relief of poverty:

i. Intention of the donor.

ii. In Oppenheng vs Tobacco securities case, the trust was declared void because the
trust was for only a specific amount of people.
iii. A charitable trust for family person is absolutely void.

2) Advancement of education:

i. Advancement of education to training for both students and teachers.

ii. Advancement of education by learning. For example: Fund for research.
iii. Particular objects or classes/promotion of object.
iv. Making and developing educational institutes.
v. Games and tournaments.

3) Advancement of Religion:
 i. Building up and developing religious institutes.
ii. Spreading religion by helping poor peoples from the fund.
iii. Making fund for welfare of religion.

4) Any other purposes:

i. Making fund for roads, culverts, bridges for local area.

ii. Welfare fund for animals and birds of local area.
iii. Recreational purposes( IRC vs. City of Glassgow Police Athletic Association)

When a charitable trust become failed:

1) Political Activism:

A charitable trust for political party or a specific political person or society is not valid. This
type of trust will considered as trust for specific amount of persons, that’s why it will not be a
charitable trust.

2) Profit making:

A trust which is intend to making profit out of it will not considered as a charitable trust. In
Regirs public day school case it was declared that “A fee paying school maybe a charitable
body, though the fees paid, but not if they are run to make a profit.

3) Exclusivity:

Making a charitable trust there should be a exclusivity for non-profit purpose. If not, the trust
will be void.

4) Validity:

The purpose of making a charitable trust should be lawful purpose if the trust make for
unlawful purpose or the objects of the trusts are unlawful then, the trust will be void. For
example: A trust for making a illegal Arsenal.
 Distinction between Charitable and Private trust

Subject matter Charitable trust Private trust

A charitable trust is an
Private trust is a trust
irrevocable trust established
created for the benefit of
for the charitable purposes.
individuals other than a
It is an instrument for the
public or charitable purpose.
advancement of the property
Definition It is created for the financial
for social purposes. In other
benefit of one or more
words a trust which assets
designated beneficiaries
and income with benefit the
rather than for the public
general public or a large
benefit.
group of the general people.
As to Doctrine of Cypress Applicable in charitable Not applicable in private
(Principle of near to it) trust. trust.
Resulting trust or doctrine of
Doctrine of return back is
Resulting Trust return back is not applicable
applicable in private trust.
in charitable trust.
Where the object of private
In case of charitable trust the
As to uncertainty trust are indefinite the
object may be indefinite.
private trust fails.
According to Section 18 of
Transfer of Property Act of In case of private trust rules
As to rules again perpetuity
1882 Public trust rule of of perpetuity is applicable.
perpetuity is not applicable.
The beneficiary are public or The beneficiary are narrow
As to Beneficiary
a large body. or specific.
Imperfection will not be If the conveyance is
fatal where the donor has the imperfect it will not be
As to imperfect conveyance
capacity to transfer and is enforce in property of
entitled to the property. trustee.
In charitable trust, at the In case of enforceable al the
As to enforcement
instance of the advocate instance of the beneficiaries
 general or two or more
person having an interest in
the trust with the consent in under the trust.
writing of the advocate
general.
Power to do certain things
Power may be exercised by
can not be exercise by the
As to exercise of power a majority of the trustees
trustees unless all the trustee
without the consent.
agree.
As to exemption from
Income tax is not payable. Income tax is payable.
income tax
 Distinction between Contract and Trust
Subject matter Trust Contract
Trust Act, 1882 ; Act no II of Contract Act, 1872 ; Act no
Act / Law
1882 IX of 1872
According to Section 3 of
Trust Act,1882: A trust ia a
transfer of property either According to Section 2(h) of
movable or immovable by the Contract Act, 1872 : An
Definition
settlor to trustee for the agreement enforceable by law
benefit of the person related is Contract.
to settlor or for the benefit of
public at large.
Trust Act came from Contract law came from
Origin
Chancery court common law
If breach of trust is done by
trustee, there is no need In Contract, enforcing for do
contractual party to enforce what is said in contract can
Enforcement
him, or in other words the only by the contractual
beneficiary can force him to parties.
run the trust.
Contract acts in Jura in
Rights Trust acts in Jura in rem.
personem.
In a valid contract,
In trust act, there is no where
Consideration consideration is essential
discussed about consideration
element.
Trust is an equitable
Obligation Contract is a legal obligation.
obligation
To form a contract there must Offer and acceptance is not
Offer and acceptance be a offer and acceptance that compulsory. Acceptance
among the parties. by trustee is presume.
In contract, there should be
A fiduciary relationship
contractual relationship no
Fiduciary relationship between trustor and trustee is
fiduciary relationship
essential for creating a trust.
between parties is needed.
 Distinction between Trust and Bailment
Subject matter Trust Bailment
According to Section 148 of
Contract Act, 1872 : A
According to Section 3 of
bailment is the delivery of
Trust Act,1882: A trust ia a
goods by one person to
transfer of property either
another for some purpose,
movable or immovable by the
Definition upon a contract that they
settlor to trustee for the
shall, when the purpose is
benefit of the person related
accomplished, be returned or
to settlor or for the benefit of
otherwise disposed of
public at large.
according to the direction of
the person delivering them.
Trust have three parties
which two are contractual and
In bailment there is two
Parties one is beneficial. Trustor,
parties, Bailor and Bailee.
Trustee, Beneficiary is the
parties in trust.
The obligation of trustee is The obligation of bailee is
Obligation
equitable . legal.
A trust can be created of all Bailment can be made only of
Property
kinds of property moveable property.
In trust, the trustee use the
Bailee is uses the property for
Use of property property for the benefit of the
the benefit of the bailor.
beneficiary.
Trust is recognised in Bailment is recognised in
Recognition
equitable rights. Common law.
Any property may be held in Only personal moveable
Nature
trust. property can be bailed.
 Coclusion

It appears that the consequences of repealing the law of Benami Transactions were not
given due thought There is no exhaustive definition of wakf. Even the criteria used for
deciding public or private wakf is confusing. Explanation to Section 2 (10) of the
Ordinance of 1962 says," when more than fifty percent of the net available income of
wakf is exclusively applied for religious and charitable purposes, such a wakf shall be
deemed to be a public wakf within the meaning of clause (e) of sub-section (l) of
Section 85 of the East Bengal Non-agricultural Tenancy Act, 1949. W hereas under
the Bengal wakf Act, 1934 section 2 (1 1 ) says wakf al-al-aulad means a wakf under
which not less than seventy-five percent of the net available income is for the time
being payable to the wakif for himself or any member of this family or descendants.
Well-known authorities like Ameer Ali and D. F. Mulla claim that under pure Islamic
Law wakf to the family, children or descendants is valid, even though there is no
dedication to charity but this view in not legally recognised. Privy Council's decisions
hold that to be a valid wakf there should be a substantial dedication to the charity and
illusory or remote dedication to charity with substantial dedication to the family
children or descendants is not valid. Although Muslim Wakf validating Act, 1913 has
validated such kind of wakf. it is claimed that the Act of 1913 does not operate to
validate wakf exclusively for the family, children or descendants’ without any
dedication to charily and on this subject privy Council's decision is still the law.
Nearly on hundred years have passed since the decision of privy Council (1894) so, in
my view, the matter demands special attention of the legislative body of Bangladesh,
so as to make the law according to Islamic Sharia. The Law on the whole subject is
not clear and systematic. Ordinance of 1962 in not clear about the functioning of other
enactments. By the ordinance , none of the previous enactments, i, e. Bengal wakf
Act, 1934 or the wakf validating Act, 1913 has been repealed. Different enactments,
originated for different purposes have piled on the subject. Legal sanctions and
remedies are spread haphazardly in different enactments. There can be a complete
legislation regulating the whole subject within one and the same system of
administration.
 Bibliography
 Equity and Trust : Mohammad Jashim Uddin, MD Nasir Uddin Bahar
 Equity, Trusts and Specific Relief : B.M. Gandhi
 The law of Trust: Keeton
 English Civil Law : Jenks
 Trust and Trustee : Bogert

Reference Links
01. Black's Law Dictionary, p. 1354 (5th ed. 1979).

02. https://definitions.uslegal.com/i/implied-trust

03. Gardner (Secret trust), An Introduction to the Law of Trusts

04. https://www.britannica.com/topic/prize-law

05.https://www.lawlink.co.nz/article/family-trusts-advantages-disadvantages-trust/

06. https://www.lawlink.co.nz/article/family-trusts-advantages-disadvantages-trust/

07. "Archived copy". Archived from the original on 2017-01-07. Retrieved 2017-01-07.

08. https://info.legalzoom.com/non-testamentary-trust-24209.html