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CS Executive · Setting Up of Business, Industrial and Labour Laws · Non-Corporate Entities

Under a trust deed, Meera is validly appointed as a new trustee in place of a deceased trustee, with Vikram continuing as trustee. Under section 75 of the Indian Trusts Act, 1882, what is the position of trust property and Meera's powers?

The trust property vests in Meera jointly with continuing trustee Vikram, as the case requires, and she has the same powers, authorities and discretions as if the author had originally nominated her. Section 75 of the Indian Trusts Act gives her full trustee status, not a limited or advisory one.

  1. AThe property vests in her jointly with Vikram as required, and she has the same powers as if originally nominated by the authorCorrect
  2. BThe property stays with Vikram alone, and Meera has only advisory powers until the Court confirms her
  3. CThe property vests in the beneficiaries, and Meera holds only supervisory powers
  4. DThe property vests in Meera alone, and Vikram's powers end

Explanation

Section 75 provides that trust property held by continuing trustees becomes vested in the new trustee, solely or jointly with the continuing trustees as the case requires. Here Vikram continues, so vesting is joint. The new trustee has the same powers, authorities and discretions as if she had been originally nominated by the author.

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