Q. Enumerate and explain duties of trustee. (1997) (1998)

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1. Introduction:
Any person who is capable in law of holding property in his own right may hold the office of the trustee in respect of such property. all persons who are competent to contract may be trustee. under the trust instrument and the trust act the trustee is entitled to claim certain rights, perform such duties as are necessary to carryout paramount intention of the author of trust.
2. Relevant Provisions:
Sec. 11 to 22 of trust act.
3. Definition of trustee:
According to Sec. 3
"The persons who accepts who accepts the confidence is called trustee".
4. Who may be a trustee:
According to Sec. 10 "every person capable of holding property may be a trustee, but where the trust involves the exercise of discretion, he can not execute it unless he is competent to contract".
5. Duties of a trustee:
I. Duty to execute trust:
A trustee is bound to fulfil the purpose of trust, and to obey the directions of the author of the trust. however a trustee is not bound to obey any direction when it would be impracticable, illegal or injurious to the beneficiaries.
II. Duty to acquaint:
A trustee is bound to acquaint himself with the nature and circumstances of the trust property. he should also obtain the transfer of trust property to himself, where necessary. he must take out trust money invested in insufficient or hazardous security.
III. Duty to protect the title:
A trustee is also bound to maintain and defend all such suits, and to take all such other steps, which may be reasonably required for the preservation of trust property and the proctection of title there to .
IV. Duty not to set up title adverse to beneficiary:
It is the duty of the trustee that he must not for himself or another set up or aid any title to trust property adverse to the interest of the beneficiary.
V. Duty to exercise reasonable care:
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 the contract to the contrary, a trustee so dealing is not responsible for the loss, destruction or determination of the trust property.
VI. Duty to convert perishable property:
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 and immediately profitable character.
Conditions:
(i) The trust should be for the benefit of several person in succession.
(ii) The trust property is of a waiting nature or a future or reversionary interest.
(iii) The creation of trust must be through some instrument.
VII. Duty to impartial:
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 other. where discretionary power is with the trustee and he exercise this power in good faith, the court has no jurisdiction to prevent him from exercising, such discretion.
VIII. Duty to prevent waste:
Where a trust is created for benefits of several persons in succession and the person who is in possession of the trust property, commits any act which is destructive or permanently injurious thereto, the trustee is bound to take measure to prevent such act.
Conditions:
(i) Trust is for benefit of several person in succession.
(ii) One of those several persons in possession of the trust property and.
(iii) The person who is in possession of trust property threatens to commit or commits such acts which are injurious to the trust property.
IX. Duty to maintain accounts and informations:
A trustee is bound to keep clear and accurate accounts of trust property. he must be in position to supply full and accurate information about the amount and state of trust property on the demand of beneficiary.
X. Duty to invest:
A trustee is bound to invest money in authorized securities. he is not allowed to exercise some discretion in investing the money of the trust as if he were a person dealing with his own estate.
6. Nature of duties:
Under trust act duties are either positive or negative.
(A) Positive duties impose an obligation to do something. instances of positive duties are as under:
(i) To preserve the trust property.
(ii) To transfer the income and the corpus to the person entitled thereto.
(iii) To render accounts and supply information.
(B) Negative duties demands a trustee to refrain from doing something instances of negative duties are as under:
(i) Not to make a profit out of the trust property.
(ii) Not to purchase trust property from himself or from his co-trustee.
(iii) Not to purchase property.
(iv) Not to delegate his duties.
7. Conclusion:
To conclude I can say that, trustee is under an obligation which must be carried out in accordance with the law and as well as with the utmost diligence. the trustee must play the part of a prudent owner and a prudent man of business.

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