Q. What are the liabilities which may be imposed on a beneficiary of a trust. (1998)

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1. Introduction:[/B]
Under trust act 1882. every person is capable of holding property as a beneficiary. he is the person for whose benefit the confidence reposed is accepted. beneficiary is entitled to each and every benefit specified by the author of the trust. he may cease to have beneficial interest in a trust on happening of a contingency.
2. Relevant Provisions:
Sec. 68 trusts act.
3. Definition:
Sec, 3 trust act defines the person for whose benefit the confidence is accepted is called the beneficiary.
4. Who may be beneficiary:
According to Sec, 9 every person capable of holding property may be beneficiary. in other words every person capable of holding property may be a beneficiary. he is not bound to accept the interest under trust.
5. Liability of beneficiary joining in breach of trust:
According to Sec, 68. where one of several beneficiaries.
(a) Joins in committing breach of trust, or
(b) Knowingly obtains any advantage there on, without the consent of the other beneficiaries or.
(c) Becomes aware of breach of trust committed or intended to be committed, and either actually conceals it, or does not within a reasonable time take proper steps to protect the interest of the other beneficiaries or.
(d) Has deceived the trustee thereby induced him to commit a breach of trust. the other beneficiaries are entitled to have all his beneficial interest impounded as against him and all who claim under him otherwise than as transferees for consideration with out notice of the breach, untitle the loss caused by the breach has been compensated.
6. Liabilities and duties of a beneficiary:
I. Duty to compensate trustee:
Beneficiary should compensate the trustee if he caused any injury or damage to the trust property.
II. Liability in breach of trust:
Beneficiary is liable if he commits breach of trust.
III. Liability not to harm other interest:
Beneficiary should not harm other interest. he is liable if harms other interest.
IV. Liability not obtain any advantage without the consent of beneficiaries:
Beneficiary should not obtain any advantage without the consent of other beneficiaries.
V. Liability to receive his interest:
Beneficiary is entitled to receive his interest but he should not claim more than his interest in trust property.
VI. Liability to become aware of breach of trust:
Beneficiary is liable to become aware of breach of trust and proceed against trustee for such breach.
VII. Liability in case to deceive the trustee:
Beneficiary is liable in case he deceive the trustee and induced him to commit a breach of trust.
VIII. Liability to take reasonable steps:
Beneficiary is liable in case if he fails to take reasonable steps with in right and duties of other beneficiaries.
7. Conclusion:
To conclude I can say that under the trust act, the beneficiary is entitled to some rights but he is also liable if he commits breach of trust, knowingly obtains any advantage without the consent of other beneficiaries, becomes aware of breach of trust and fails to proceed against trustee for such breach etc. the beneficiary should co-operate with the trustee.

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