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CSR and Social Governance · Societies and Trusts

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

Updated 11 October 2026 · Fact-checked

A trustee holds trust property for the beneficiary and must act with prudence, keep accounts and treat beneficiaries impartially. Under Section 47 a trustee cannot delegate his office or duties unless the trust instrument allows it, the delegation is in the regular course of business, is necessary, or a competent beneficiary consents.

Understand Trustees: Appointment, Duties and Liabilities

A trustee is the person who accepts the confidence reposed in him and holds the trust property for the benefit of the beneficiary. The trust works because the trustee is trusted personally. That one idea explains most of the rules in this topic.

The appointment is usually made by the author of the trust in the instrument. Broadly, a person who is competent to contract can be a trustee. Someone who is not competent, such as a minor, cannot be. A person named as trustee is not forced to act. He may disclaim the trust, that is, refuse it. Once he accepts, he is bound by the duties of the office.

The main duties are these. Deal with the trust property as a person of ordinary prudence would deal with his own. Keep clear and accurate accounts and give information to beneficiaries when they ask. Act impartially between beneficiaries, and do not favour one at the cost of another. Do not use the office for personal gain. A trustee who breaches these duties is liable to make good the loss caused to the trust.

Because the office rests on personal trust, the law says the trustee must do the work himself. Section 47 states that a trustee cannot delegate his office or any of his duties either to a co-trustee or to a stranger. The rule is then softened by four exceptions, since trusts also need to run in practice.

The four exceptions are: (a) the instrument of trust provides for delegation; (b) the delegation is in the regular course of business; (c) the delegation is necessary; (d) the beneficiary, being competent to contract, consents. The Explanation adds that appointing an attorney or proxy for an act that is merely ministerial and involves no independent discretion is not delegation at all.

Key rules to remember

General rule on delegation (Section 47)
Trustee cannot delegate his office or duties to a co-trustee or a stranger
This is the starting point. Always state it first, then test the exceptions.
Exceptions to the rule (Section 47 (a) to (d))
(a) instrument of trust provides; (b) regular course of business; (c) delegation is necessary; (d) competent beneficiary consents
Any one exception is enough. The beneficiary must be competent to contract, so a minor's consent does not count.
Ministerial acts (Explanation to Section 47)
Attorney or proxy for an act merely ministerial, with no independent discretion = not delegation
The test is whether the agent has to use his own judgment. If not, Section 47 is not attracted.
Standard of care
Trustee must deal with trust property as a man of ordinary prudence would deal with his own
A breach of this duty makes the trustee liable to make good the loss caused to the trust.
Core duties
Prudence + proper accounts and information + impartiality + no personal profit
Use as a checklist when analysing facts.

How to solve Trustees: Appointment, Duties and Liabilities questions

Exam questions here are case-based. You are given a trustee and a set of facts. Follow the provision, analysis, conclusion pattern.

  1. 1Identify the parties: author, trustee, beneficiary. Note whether the beneficiary is a minor or competent to contract.
  2. 2Decide what the question tests: appointment or disclaimer, a duty, or delegation.
  3. 3State the rule in plain words. For delegation, quote the Section 47 rule that a trustee cannot delegate his office or duties.
  4. 4Check the facts against each exception in turn: instrument, regular course of business, necessity, beneficiary's consent.
  5. 5Check whether the act is merely ministerial with no independent discretion. If yes, it is not delegation.
  6. 6For duty questions, test the facts against prudence, accounts, impartiality and personal gain.
  7. 7Conclude clearly: valid or invalid delegation, and whether the trustee is liable to make good the loss.
  8. 8Add a practical point where relevant, such as recording the delegation in writing and keeping accounts.

Quickest way: Rule, four exceptions, ministerial test

When to use it: Use when you have limited time and the question asks whether a trustee could hand work to someone else.

  1. Write the rule: no delegation to a co-trustee or a stranger.
  2. Run the four exceptions (a) to (d) and tick the one that fits the facts.
  3. If none fits, ask if the work is only ministerial. If yes, no delegation.
  4. Conclude in one line on validity and liability.

Common mistakes in Trustees: Appointment, Duties and Liabilities

  • Saying a trustee can never delegate anything.

    Students remember the heading and forget the exceptions.

    Fix: Always list the four exceptions and the ministerial Explanation.

  • Accepting a minor beneficiary's consent as valid.

    The word 'consent' is read without the condition attached to it.

    Fix: Write that the beneficiary must be competent to contract.

  • Treating appointment of an agent for routine clerical work as delegation.

    Students miss the Explanation to Section 47.

    Fix: Ask whether independent discretion is involved. If not, it is not delegation.

  • Believing a person named as trustee must act.

    Students confuse nomination with acceptance.

    Fix: State that the named person may disclaim the trust before accepting it.

  • Thinking only the beneficiary can be harmed by delegation and the trustee is safe.

    Liability is ignored in the conclusion.

    Fix: End with the trustee's liability to make good any loss from an unauthorised delegation.

Worked examples

Example 1

Rohan is the sole trustee of a trust for the benefit of Meera, an adult, under a deed that is silent on delegation. Rohan hands the entire management of the trust's investments, including the choice of securities, to a stranger, Sameer, without telling Meera. Is this valid under Section 47?

Show the solution
  1. Rule: under Section 47 a trustee cannot delegate his office or duties to a co-trustee or a stranger.
  2. Exception (a): the deed is silent, so it does not apply.
  3. Exception (b): nothing in the facts shows that handing over the whole management of investments, including the choice of securities, is something a prudent person would do in the regular course of business.
  4. Exception (c): nothing in the facts shows delegation was necessary.
  5. Exception (d): Meera is competent to contract, but she was not told and gave no consent.
  6. Ministerial test: choosing securities involves independent discretion, so the Explanation does not help.

Answer: The delegation is not valid because no exception applies and the act is not ministerial. Rohan breached Section 47 and is liable to make good any loss caused to the trust.

Example 2

Anita is trustee of a building held in trust, with rents to be paid to Kavita. Anita employs a rent collector to collect monthly rents from tenants. Is this a breach of Section 47?

Show the solution
  1. Rule: a trustee cannot delegate his office or duties unless an exception applies.
  2. The act is collecting rents from fixed monthly tenancies. It involves no independent discretion.
  3. The Explanation says appointing an attorney or proxy to do an act merely ministerial is not delegation.
  4. Illustration (c) to Section 47 supports this: a trustee of rented houses may employ a proper person to collect the rents.

Answer: There is no breach. Collecting rents is a ministerial act, so it is not delegation under Section 47. Anita should still keep accounts and supervise the collector.

Exam tips

  • Begin every delegation answer with the rule, then go through exceptions (a) to (d) by name.
  • Use the Section 47 illustrations, such as the auctioneer and the rent collector, to support your reasoning.
  • Quote the condition 'competent to contract' whenever you rely on beneficiary consent.
  • Close each answer with the conclusion and the trustee's liability, not just the analysis.
  • Give a short drafting or compliance point, such as writing a power of delegation into the trust deed.

Practice questions from Societies and Trusts

Trustees: Appointment, Duties and Liabilities 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 Liabilities: frequently asked questions

Can a trustee delegate under Section 47 of the Indian Trusts Act?

As a rule, no. A trustee cannot delegate his office or duties to a co-trustee or a stranger. He may do so only if the instrument of trust provides, the delegation is in the regular course of business, it is necessary, or a competent beneficiary consents.

What are the exceptions to the rule that a trustee cannot delegate?

There are four: the trust instrument allows it, it is in the regular course of business, it is necessary, or the beneficiary, being competent to contract, consents. Separately, appointing an attorney or proxy for a merely ministerial act is not delegation.

Who can be appointed as a trustee?

Generally, a person who is competent to contract can be a trustee. A person who is not competent, such as a minor, cannot. The person named is not bound to accept and may disclaim the trust.

What happens if a trustee delegates without authority?

He commits a breach of trust. He is liable to make good the loss caused to the trust property or to the beneficiary because of the breach.