Vacancy of the Office of Trustee

Introduction

A trustee plays an important role in managing trust property. However, situations may arise where the trustee can no longer continue in office. The Indian Trust Act, 1882 provides rules on when the office of a trustee becomes vacant.

Meaning / Definition

The office of a trustee becomes vacant when the trustee ceases to hold his position due to death or discharge (release from duties). This is governed mainly by Section 70 of the Act.

Modes or Types

Vacancy by death

The office of a trustee automatically becomes vacant on his death. A new trustee must then be appointed to continue the trust.

Vacancy by discharge

A trustee may be discharged (released from duties) in the following ways:

By extinction of the trust

When the trust comes to an end, the office of the trustee also ends.

By completion of duties

When the purpose of the trust is fulfilled, the trustee is discharged.

By terms of the trust instrument

If the trust deed provides a specific method for discharge, it will apply.

By appointment of a new trustee

When a new trustee is appointed in place of the existing trustee, the office becomes vacant.

By consent of beneficiaries

If all beneficiaries are competent (legally capable) and agree, the trustee may be discharged.

By order of the court

A trustee may be discharged by the court upon application.

Discharge by court (Section 72)

A trustee can apply to the Principal Civil Court of original jurisdiction for discharge. The court will:

• Grant discharge if valid reasons are shown
• Reject the application if reasons are not sufficient

Practical Example

A trustee managing a trust becomes seriously ill and is unable to perform his duties. He files a petition before the court seeking discharge. If the court is satisfied with his condition, it will discharge him and allow appointment of a new trustee.

Summary

• Office of trustee becomes vacant by death or discharge
• Discharge can happen due to completion, extinction, or agreement
• Trust deed may provide method of discharge
• Beneficiaries can consent to discharge if competent
• Court can discharge trustee on valid grounds
• Trustee must show sufficient reason for discharge by court