CSR and Social Governance · Societies and Trusts

Vacating Trusteeship and Extinction of Trusts Under the Indian Trusts Act

Updated 11 October 2026 · Fact-checked

A trustee's office is vacated only by death or discharge (Section 70). Discharge is allowed only in the six ways listed in Section 71. A trust is extinguished under Section 77 when its purpose is fulfilled, becomes unlawful, becomes impossible, or a revocable trust is expressly revoked. Revocation is limited by Section 78.

Understand Vacating Trusteeship and Extinction of Trusts

A trust is run by trustees. Sometimes a trustee dies, retires or becomes unfit. Sometimes the trust itself comes to an end. The Indian Trusts Act, 1882 covers both situations, and this topic is about them.

First, the trustee's office. Under Section 70, the office is vacated by death or by discharge. Discharge is a closed list in Section 71. A trustee cannot just walk away. He must fit one of the listed routes, such as extinction of the trust, completing his duties, means in the trust deed, appointment of a replacement, consent of all competent beneficiaries, or a Court order.

Second, replacement. Section 73 lets a new trustee be appointed when a trustee disclaims, dies, stays out of India for six continuous months, leaves India to live abroad, is declared insolvent, wants to be discharged, refuses or becomes unfit or incapable, or accepts an inconsistent trust. If this cannot be done under Section 73, the beneficiary may petition the Court under Section 74. Under Section 75, the trust property then vests in the new trustee.

Third, the end of the trust. Section 77 lists when a trust is extinguished. Section 78 says how a trust can be revoked. Section 79 protects what trustees have duly done before revocation.

In the exam, read the facts and ask two questions. Is this about the trustee leaving, or the trust ending? Then match the facts to the exact clause.

Key rules to remember

Vacation of office (Section 70): Office vacated = death OR discharge; These are the only two ways the office of trustee is vacated.
Discharge of trustee (Section 71): (a) extinction of trust; (b) completion of duties; (c) means in trust instrument; (d) appointment of new trustee; (e) consent of trustee and all beneficiaries competent to contract; (f) Court; The list is exhaustive: the word used is 'only'.
Petition for discharge (Section 72): Trustee petitions principal Civil Court of original jurisdiction; Court discharges if sufficient reason; Without sufficient reason, the Court will not discharge him unless a proper person can be found to take his place.
Appointment of new trustee (Section 73): Order: person nominated in instrument → author (if alive and competent to contract) / surviving or continuing trustees / legal representative of last continuing trustee / (with Court consent) retiring trustees; Appointment must be in writing under the hand of the person making it. The number of trustees may be increased.
Appointment by Court (Section 74): If appointment under Section 73 is impracticable → beneficiary petitions the Court, without a suit; Court considers the author's wishes, the wishes of the person empowered to appoint, whether the appointment promotes or impedes the trust, and the interests of all beneficiaries.
Vesting (Section 75): Trust property vests in the new trustee, solely or jointly with continuing trustees; The new trustee has the same powers as if originally nominated.
Extinction (Section 77): (a) purpose fulfilled; (b) purpose unlawful; (c) fulfilment impossible (destruction of property or otherwise); (d) revocable trust expressly revoked; Any one ground is enough.
Revocation (Section 78): Will: at testator's pleasure. Otherwise only by: (a) consent of all beneficiaries competent to contract; (b) reserved power of revocation (non-testamentary instrument or word of mouth); (c) trust for author's debts not communicated to creditors; If creditors are parties to the arrangement, their consent is needed.
Protection of trustees' acts (Section 79): Revocation cannot defeat or prejudice what trustees have duly done; Acts done properly before revocation stand.

How to solve Vacating Trusteeship and Extinction of Trusts questions

Use this order for any problem on trustees leaving or trusts ending. Each step ties your answer to a section.

1Identify the issue: is it the trustee's office (vacancy, discharge, replacement) or the trust itself (extinction, revocation)?
2State the rule in one line with the section number, such as Section 71 for discharge or Section 77 for extinction.
3List the facts that matter: how the trust was created (will or otherwise), whether a revocation power was reserved, the beneficiaries' capacity, and the event that occurred.
4Match each fact to a clause. For discharge, pick from Section 71(a) to (f). For replacement, check the Section 73 events and the order of persons who may appoint.
5If appointment under Section 73 is not possible, move to Section 74 and the Court's selection factors. Then mention vesting under Section 75.
6For revocation, check Section 78 and then Section 79 on protecting what trustees have duly done.
7Conclude in one clear sentence, such as 'the trustee cannot be discharged' or 'the trust is extinguished'.
8Add a practical point: written appointment, Court petition, or a recorded consent of the beneficiaries.

Quickest way: Two-question screen

When to use it: Use this when you have under ten minutes for a short case question.

Ask: trustee leaving or trust ending? Write the section range, 70 to 75 or 77 to 79.
Quote the one clause that fits the facts and say why in one line.
Check one trap: is the list exhaustive (Section 71), who can appoint (Section 73), or the will versus non-will difference (Section 78)?
Write the conclusion and one compliance point.

Common mistakes in Vacating Trusteeship and Extinction of Trusts

Saying a trustee can resign whenever he wishes.
Students assume retirement is a personal right, as in many offices.
Fix: Section 71 gives only six routes to discharge. He needs one, such as consent of all competent beneficiaries or a Court order, or a means in the trust deed.
Treating consent of one beneficiary as enough where there are several.
Students skim Section 71(e) and Section 78(a).
Fix: Where there are more beneficiaries than one, all must consent, and all must be competent to contract.
Saying every trust can be revoked by its author.
Students confuse the author's role with ownership of the property.
Fix: Only a trust created by will is revocable at the testator's pleasure. Others need a ground in Section 78, such as a reserved power, beneficiaries' consent, or an uncommunicated trust for the author's debts.
Forgetting Section 79 when a trust is revoked.
Students focus on the revocation itself and ignore what happened before it.
Fix: Add that revocation cannot defeat or prejudice what the trustees have duly done in executing the trust.
Skipping the order of appointers in Section 73 and going straight to the Court.
Students assume the Court appoints every new trustee.
Fix: First check the person nominated in the instrument, then the author or continuing trustees. The Court under Section 74 acts when appointment under Section 73 is impracticable.
Confusing extinction with discharge of a trustee.
Both end the trustee's duties, so they look alike.
Fix: Extinction ends the trust (Section 77). Discharge ends one trustee's office (Section 71) while the trust may continue. Extinction of the trust is itself one route to discharge.

Worked examples

Example 1

Meera Foundation Trust, set up by a deed by Suresh for the education of two minors, has a sole trustee, Anil. Anil moves abroad permanently to live there. The deed names no person to appoint trustees. Suresh is alive and competent to contract. Who can appoint a new trustee, and how?

Show the solution

Issue: vacancy in the trustee's office and appointment of a replacement. The relevant provision is Section 73.
Fact match: Anil leaves India for the purpose of residing abroad. This is a listed event under Section 73.
Who appoints: the deed names no person, so Section 73(b) applies. The author, Suresh, is alive and competent to contract, so he may appoint. The surviving or continuing trustees could too, but none remain.
Form: the appointment must be in writing under Suresh's hand. The number of trustees may be increased.
Effect: under Section 75, the trust property vests in the new trustee, who has the same powers as if originally nominated.
If the appointment proves impracticable, a beneficiary may petition the principal Civil Court of original jurisdiction under Section 74, without a suit.

Answer: Suresh, as author, may appoint a new trustee in writing under Section 73(b). The trust property then vests in the new trustee under Section 75. If this is impracticable, a beneficiary may apply to the Court under Section 74.

Example 2

Ravi creates a trust by a registered deed for the benefit of his adult son and daughter, both competent to contract. The deed reserves no power of revocation. Two years later Ravi wants to revoke it. Can he? Would the answer differ if the trust were created by his will?

Show the solution

Issue: revocation of a trust, governed by Section 78.
Rule: a trust created by will can be revoked at the testator's pleasure. Any other trust can be revoked only on the grounds in Section 78(a) to (c).
Apply to the deed: it is a non-testamentary instrument. No power of revocation was reserved, so Section 78(b) does not help. It is not a trust for payment of Ravi's debts, so Section 78(c) does not apply.
Section 78(a) remains: revocation is possible by consent of all the beneficiaries, who must be competent to contract. Both are adults, so if both consent, the trust can be revoked. Ravi acting alone cannot.
Even then, under Section 79, revocation cannot defeat or prejudice what the trustees have duly done in executing the trust.
Will case: if the trust were created by will, Ravi could revoke it at his pleasure.

Answer: Ravi cannot revoke the deed trust alone. He can do so only with the consent of both beneficiaries under Section 78(a), and Section 79 protects the trustees' acts already duly done. If created by will, he could revoke it at his pleasure.

Exam tips

Quote the section number for each rule. These questions are case-based, so state the provision, apply the facts, then conclude.
Learn the Section 71 list as six items, (a) to (f). Examiners often ask for it directly or test one item in a case.
For revocation, always split will trusts from other trusts. This is the commonest scoring point.
Mention the Court route (Sections 72 and 74) and the petition to the principal Civil Court of original jurisdiction when a practical remedy is asked for.
Write the conclusion clearly in the last line, for example 'the trust stands extinguished under Section 77(c)'.

Practice questions from Societies and Trusts

Vacating Trusteeship and Extinction of Trusts in other exams

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

CS ExecutiveRights and Liabilities of Beneficiary; Vacating Trusteeship and Extinction

Vacating Trusteeship and Extinction of Trusts: frequently asked questions

How is a trust extinguished under the Indian Trusts Act, 1882?

Under Section 77, a trust is extinguished when its purpose is completely fulfilled, becomes unlawful, or becomes impossible to fulfil through destruction of the trust property or otherwise. It is also extinguished when a revocable trust is expressly revoked.

How can a trustee retire or be discharged?

Section 71 lists the only ways: extinction of the trust, completion of duties, means in the trust instrument, appointment of a new trustee, consent of the trustee and all competent beneficiaries, or a Court order. Under Section 72, a trustee can petition the Court, which discharges him if there is sufficient reason.

Can the author of a trust revoke it?

It depends on how the trust was created. A trust made by will can be revoked at the testator's pleasure. Any other trust can be revoked only on a ground in Section 78, such as beneficiaries' consent or a power of revocation expressly reserved.

Who appoints a new trustee when one dies?

Under Section 73, first the person nominated in the trust instrument. If there is none or none able and willing, then the author if alive and competent to contract, or the surviving or continuing trustees, or the legal representative of the last continuing trustee. If this is impracticable, a beneficiary can petition the Court under Section 74.