Q. What are the powers with the trustee may exercise under the trust act. (2000)

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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. 36 to 45 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. Powers of the trustee:
A trustee may have three kinds of powers namely.
(i) Powers given to the trustee by the instrument of trust.
(ii) Powers given by statue.
(iii) Powers under general principles of law of principles of equity.
6. General authority of a trustee:
A trustee has been given a general authority by this act which a trustee may do all acts which are reasonable and proper for.
(i) The realization, protection or benefit of the trust property.
(ii) For the protection and support of a beneficiary who is not competent to contract.
7. Statutory powers of the trustee:
The statutory powers of trustees are dealt in Sec 37 to 43 of the trust act.
I. Power to sell:
A trustee where empowered may sell in lost by public auction or by private contract, the trust property. a trustee may exercise a reasonable discretion as to the time of affecting the sale or purchase.
II. Power to convey:
A trustee has the power to convey or otherwise dispose of the trust property.
III. Power to vary investment:
A trustee may it at his discretion invest in any security and vary investment or others of same nature. but where beneficiary is competent to contract and benefit is created for him for life, it is necessary to got the consent of such beneficiary prior to vary investment.
IV. Power to maintain an infant beneficiary:
Where any property is held by trustee in trust for minor, such trustee may apply such property for his maintenance or education or advancement in life or for the reasonable expenses of his religious worship, marriage or funeral either the whole or any part of the income of the property or property itself with permission of the civil court under whose jurisdiction the property is situated.
v. Power to give receipts:
Any trustee may give a receipt in writing for any money, securities or other moveable property payable, transferable to him by reason or in exercise of any trust or power.
VI. Power to compound:
A trustee may compromise, compound, abandon, submit to arbitration or otherwise settle any debt, account, or claim something whatever relating trust.
8. Nature of powers of the trustee:
Exercise of powers by the trustee depends upon the nature of the trust and the character and situation of the beneficiary powers must be exercised for the benefit of a trust and its exercise must be bona-fide reasonable and impartial.
9. Conclusion:
To conclude I can say that, a trustee can do and exercise all powers which are reasonable and proper for the realization, protection or benefit of the trust property as well as for the protection and support of a beneficiary who is not competent to contract.

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