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CS Professional · CSR and Social Governance · Societies and Trusts

Meera is the sole trustee of a private family trust whose deed is silent on how a trustee may leave office. The only beneficiary, Arun, is an adult competent to contract. Meera wishes to step down and Arun agrees in writing. Under the Indian Trusts Act, 1882, can Meera be discharged on this basis?

Yes. Under Section 71, a trustee may be discharged by consent of herself and the beneficiary, where the beneficiary is competent to contract. Arun is a sole competent adult beneficiary and has consented, so Meera can be discharged even though the deed is silent.

  1. ANo, a trustee can be discharged only by a Court order
  2. BYes, discharge by consent of the trustee and the competent beneficiary is a recognised modeCorrect
  3. CNo, discharge needs a means prescribed in the trust deed, and the deed is silent
  4. DYes, but only after a new trustee has completed her duties

Explanation

Section 71 lists the only modes of discharge. One of them is the consent of the trustee and the beneficiary, or all beneficiaries where there are several, who are competent to contract. Arun is a sole adult beneficiary, so the mode applies; the deed's silence does not matter because deed-prescribed means is a separate mode.

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