Main Points to Trust Act 1882
1. Definition of Trust:
A “trust”is an obligation annexed to the ownership of property,
and rising out of a confidence reposed in and accepted by the owner,
or declared and accepted by him, for the benefit of another, or of
another and the owner.
2. Parties in Trust
I. Author of the trust.
II. Trustee.
III. Beneficiary.
3. Objects may be
For Benefit of Minor.
For Charity.
For Religious Services.
For Goodwill of people.
Study.
4. Essentials
Author
Trustee.
Beneficiary.
Trust Property
Benefit.
Legal Object.
Competency.
5. Types of Property
Moveable.
Immovable.
6. Kinds of Trust
Prepared By: Sir. Ali Khalil (LL.M)
Main Points to Trust Act 1882
o Constructive.
o Secret.
o Executed.
o Private.
o Public.
o Expressed
o Implied
7. Revocation of Trust.
Fulfillment of purpose.
Order of Court.
Illegality.
Not fulfilling purpose.
Author’s Will.
Beneficiary’s Consent.
8. Conditions of Author.
Must be able to do contract.
Not Disqualified by Law
Must be owner of the Property.
Appointment of Guardian (If author is Minor).
Having Lawful Purpose.
9. Trustee’s Definition.
“Every person capable of having property may be Trustee, but where
the trust involves exercise of discretion, he cannot execute it unless
he is competent to contract”.
10. Qualification for Trustee.
Capable of Holding Property.
Competent to contract.
Not insane.
Not disqualified by law.
Prepared By: Sir. Ali Khalil (LL.M)
Main Points to Trust Act 1882
Not alien enemy
11. Rights of Trustee
o To keep the property in his possession.
o Collect the rents, debentures or money.
o To redeem the money.
o To get directions from the court.
o Check and maintain the accounts.
o To collect the fees.
12. Powers of Trustee
To sell the property.
To transfer the property after sell.
To issue the receipt.
To invest the money for benefit of trust.
To use the discretion power if allowed as per deed.
13. Duties of Trustee (11-20)
To take care the property.
Protect the rights of beneficiary.
To be aware from the condition of trust.
Not to destroy the Trust property.
Equally deal with the beneficiaries.
To maintain the accounts properly.
To stop any type of illegality.
14. Disqualification of Trustee
In case of dishonesty.
Override or neglect the law.
To commit fraud.
Caused intentionally damage.
Prepared By: Sir. Ali Khalil (LL.M)
Main Points to Trust Act 1882
To violate the essentials of trust deed.
Dissatisfaction of beneficiaries.
Disqualified by the court.
15. Vacated
o Death of Trustee.
o Resignation of trustee.
o Unable to perform his duties.
o Through Court
o Through mutual consent of Trustee and Beneficiary.
16. Rights of Beneficiaries.
o To get benefits.
o To examine the accounts.
o May transfer his rights.
o To file suit for execution of his rights.
o To file suit for appointment of trustee.
17. Liabilities of the Beneficiary.
To pay compensation in case of damage.
Not to work against the trust.
To act upon the rules made by trust deed,
Not cause injury to rights of others.
Not to override the law.
Prepared By: Sir. Ali Khalil (LL.M)
