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Trustees: Appointment, Duties and Powers under the Indian Trusts Act

Updated 11 October 2026 · Fact-checked

A trustee holds trust property for the benefit of the beneficiaries. Under the Indian Trusts Act, 1882, a trustee must act with prudence, keep accounts, avoid conflict of interest and not delegate his office except in the cases the Act allows. To answer a question, state the provision, apply the facts, then conclude.

Understand Trustees: Appointment, Duties and Powers

A trust is an obligation attached to ownership of property. The author creates it, the trustee holds the property, and the beneficiary enjoys the benefit. The trustee is the legal owner but must use the property only for the beneficiary.

The Act applies to private trusts. Section 1 says nothing in the Act affects Muhammadan law on waqf, or applies to public or private religious or charitable endowments. So do not apply this Act to a temple or charitable endowment question without checking the facts.

Think of the trustee's position in four parts: who can be a trustee, how he accepts or disclaims the office, what he must do, and what he may do. After that, study how a trustee is replaced or removed.

The key idea is trust and good faith. A trustee is not a normal agent or contracting party. He must put the beneficiary's interest first and cannot make a profit from the trust office for himself.

One rule is stated exactly in the text supplied: Section 47, a trustee cannot delegate his office or any of his duties either to a co-trustee or to a stranger, unless a listed exception applies. Most other rules below are stated in plain words, as taught in the study material. Check the exact section numbers in the Act before quoting them in the exam.

Key rules to remember

Rule on delegation (Section 47): No delegation, unless: (a) the trust instrument allows it; (b) it is in the regular course of business; (c) it is necessary; or (d) a competent beneficiary consents; Appointing an attorney or proxy for an act that is merely ministerial and needs no independent discretion is not delegation.
Who can be a trustee: Any person capable of holding property and competent to contract can be a trustee; A minor or person of unsound mind cannot be a trustee. A person who is not competent to contract cannot accept the office. The author of the trust can also be a trustee.
Acceptance and disclaimer: A person named as trustee is not bound to accept; he may accept or disclaim the office; Disclaimer is made before accepting. Once he has accepted, he can retire only in the ways the Act permits.
Standard of care: Trustee must deal with trust property as a man of ordinary prudence would deal with his own property of the same kind; This is the basic duty, and the base for most liability questions.
Core duties: Know the terms of the trust; protect the property; keep accounts; avoid conflict of interest; act impartially; no personal profit; Use as a checklist for any duty question.
Removal or replacement: Appointment by the author, by the beneficiaries or by the court; removal or replacement by the court; Give the grounds in the question facts, such as breach, misconduct or incapacity, and conclude.

How to solve Trustees: Appointment, Duties and Powers questions

Use the same method for every question on trustees: provision first, then facts, then conclusion.

1Identify what is asked: appointment, disclaimer, duty, right or power, delegation or removal.
2Check the trust is covered by the Act. Public or private religious or charitable endowments are excluded by Section 1.
3State the rule in plain words, citing the section only if you are sure of it. For delegation cite Section 47.
4List the facts that matter: who the trustee is, what the instrument says, what he did and what loss followed.
5Apply the rule to each fact. Check each exception to a rule before concluding.
6Write a clear conclusion: what the trustee must do, may do, or what the beneficiary can claim.

Quickest way: Four-question check

When to use it: Use when time is short and the problem is a short fact-based question.

Was the person competent and did he accept the office?
Did the act fall within the trust instrument or his powers?
Did he act as an ordinarily prudent person would with his own property?
Did he gain personally, delegate or favour one beneficiary? If yes, he has breached a duty.

Common mistakes in Trustees: Appointment, Duties and Powers

Saying a trustee may freely delegate duties.
Students confuse trustees with agents in business.
Fix: State Section 47: no delegation unless the instrument allows it, it is in the regular course of business, it is necessary, or a competent beneficiary consents.
Treating every appointment of an attorney as delegation.
The Explanation to Section 47 is skipped.
Fix: Mention that a proxy for an act merely ministerial, with no independent discretion, is not delegation.
Applying the Act to religious or charitable endowments.
The word trust is used for charities in daily speech.
Fix: Recall Section 1: the Act does not apply to public or private religious or charitable endowments.
Allowing a person not competent to contract to act as trustee.
Students think any property owner can be a trustee.
Fix: State that the trustee must be capable of holding property and competent to contract; a minor cannot be one.
Giving duties and rights as one list.
Both are headed under the trustee.
Fix: Keep duties (what he must do) apart from rights and powers (what he may do), and give a short heading for each.
Quoting section numbers from memory.
Students try to impress the examiner.
Fix: Give a section number only if certain. A correct rule in plain words earns marks; a wrong number does not.

Worked examples

Example 1

Ravi is trustee of a private trust under a deed that is silent on delegation. He is busy and hands the whole task of managing the trust's investments to his friend Sunil, a stranger, without telling the beneficiaries. Is this valid?

Show the solution

Rule: under Section 47 a trustee cannot delegate his office or duties to a co-trustee or a stranger.
Exceptions: the instrument allows it, the delegation is in the regular course of business, it is necessary, or a competent beneficiary consents.
Facts: the deed is silent, the beneficiaries were not asked, and there is no stated necessity. Investment management involves discretion, so it is not merely ministerial.
Application: none of the four exceptions is shown on these facts.

Answer: The delegation is not valid. Ravi has breached his duty under Section 47 and remains answerable to the beneficiaries for any loss.

Example 2

A deed makes Meena trustee of fifty rented flats, to collect rents and pay them to her niece. Meena employs a rent collector to collect the rents each month. Has she breached Section 47?

Show the solution

Rule: a trustee cannot delegate, except as Section 47 allows. The Explanation excludes acts that are merely ministerial.
Facts: the collector only collects rents on Meena's behalf. He uses no independent discretion over the trust.
Illustration (c) of Section 47 is similar: for fifty houses let at monthly rents, the trustee may employ a proper person to collect rents.
Application: Meena remains responsible for the trust and for supervising the collector.

Answer: No breach. Employing a rent collector for a ministerial task is not delegation under Section 47, provided Meena chooses a proper person and keeps control.

Exam tips

Learn Section 47 word for word. It is the one provision in this topic that examiners can test directly.
Use headings such as Duties, Rights and Powers, Disclaimer, Appointment, and Removal for long answers, so the answer is easy to mark.
In case problems, always end with a clear conclusion on the trustee's liability or the beneficiary's remedy.
Write the Section 1 exclusion in one line when the facts mention a temple, mosque or charity.
Use the standard of an ordinarily prudent person in any answer on breach of duty.

Practice questions from Non-Corporate Entities

Trustees: Appointment, Duties and Powers in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Trustees: Appointment, Duties and Powers: frequently asked questions

Who can be a trustee under the Indian Trusts Act?

Any person capable of holding property and competent to contract can be a trustee. A minor or a person of unsound mind cannot. The author of the trust may also be a trustee.

Can a trustee delegate his duties?

Generally no. Section 47 allows delegation only if the trust instrument provides for it, it is in the regular course of business, it is necessary, or a competent beneficiary consents. A merely ministerial act by an attorney or proxy is not delegation.

Can a person refuse to be a trustee?

Yes. A person named as trustee is not bound to accept the office. He may disclaim it, and should do so before he accepts.

How can a trustee be removed?

Removal or replacement is by the court, usually where the trustee has breached his duties or is unfit. The author, the instrument or the beneficiaries can also appoint a new trustee in the cases the Act allows.