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THE TRUSTS ACT, 1882

(ACT NO. II OF 1882).
  Part No : Chapter No : Section No: [ 13th January, 1882  
  
     1 An Act to define and amend the law relating to Private Trusts and Trustees.
 
Preamble
    WHEREAS it is expedient to define and amend the law relating to private trusts and trustees; It is hereby enacted as follows:-
 
CONTENTS
 
SECTIONS
 
CHAPTER I
PRELIMINARY
1. Short title Commencemen
Local extent Savings
2. [Omitted]
3. Interpretation-clause
Expressions defined in Act IX of 1872
CHAPTER II
OF THE CREATION OF TRUSTS
4. Lawful purpose
5. Trust of immoveable property
Trust of moveable property
6. Creation of trust
7. Who may create trusts
8. Subject of trust
9. Who may be beneficiary
Disclaimer by beneficiary
10. Who may be trustee
No one bound to accept trust
Acceptance of trust
Disclaimer of trust
CHAPTER III
OF THE DUTIES AND LIABILITIES OF TRUSTEES
11. Trustee to execute trust
12. Trustee to inform himself of state of trust-property
13. Trustee to protect title to trust-property
14. Trustee not to set up title adverse to beneficiary
15. Care required from trustee
16. Conversion of perishable property
17. Trustee to be impartial
18. Trustee to prevent waste
19. Accounts and information
20. Investment of trust-money
20A. Power to purchase redeemable stock at a premium
20B. Investment of trust-money in company securities
21. Deposit in Government Savings Bank
22. Sale by trustee directed to sell within specified time
23. Liability for breach of trust
24. No set-off allowed to trustee
25. Non-liability for predecessor’s default
26. Non-liability for co-trustee’s default
Joining in receipt for conformity
27. Several liability of co-trustees
Contribution as between co-trustees
28. Non-liability of trustee paying without notice of transfer by beneficiary
29. Liability of trustee where beneficiary’s interest is forfeited to the Government
30. Indemnity of trustees
CHAPTER IV
OF THE RIGHTS AND POWERS OF TRUSTEES
31. Right to title-deed
32. Right to reimbursement of expenses
Right to be recouped for erroneous overpayment
33. Right to indemnity from gainer by breach of trust
34. Right to apply to Court for opinion in management of trust-property
35. Right to settlement of accounts
36. General authority of trustee
37. Power to sell in lots, and either by public auction or private contract
38. Power to sell under special conditions Power to buy in and re-sell
Time allowed for selling trust-property
39. Power to convey
40. Power to vary investments
41. Power to apply property of minors, etc., for their maintenance, etc.
42. Power to give receipts
43. Power to compound, etc.
44. Power to several trustees of whom one disclaims or dies
45. Suspension of trustee’s powers by decree
CHAPTER V
OF THE DISABILITIES OF TRUSTEES
46. Trustee cannot renounce after acceptance
47. Trustee cannot delegate
48. Co-trustees cannot act singly
49. Control of discretionary power
50. Trustee may not charge for services
51. Trustee may not use trust-property for his own profit
52. Trustee for sale or his agent may not buy
53. Trustee may not buy beneficiary’s interest without permission
Trustee for purchase
54. Co-trustees may not lend to one of themselves
CHAPTER VI
OF THE RIGHTS AND LIABILITIES OF THE BENEFICIARY
55. Rights to rents and profits
56. Right to specific execution
Right to transfer of possession
57. Right to inspect and take copies of instrument of trust accounts, etc.
58. Right to transfer beneficial interest
59. Right to sue for execution of trust
60. Right to proper trustees
61. Right to compel to any act of duty
62. Wrongful purchase by trustee
63. Following trust-property- into the hands of third persons; into that into which it has been converted
64. Saving of rights of certain transferees
65. Acquisition by trustee of trust-property wrongfully converted
66. Right in case of blended property
67. Wrongful employment by partner-trustee of trust-property for partnership purposes
68. Liability of beneficiary joining in breach of trust
69. Rights and liabilities of beneficiary’s transferee
CHAPTER VII
OF VACATING THE OFFICE OF TRUSTEE
70. Office how vacated
71. Discharge of trustees
72. Petition to be discharged from trust
73. Appointment of new trustees on death, etc.
74. Appointment by Court
Rules for selecting new trustees
75. Vesting of trust-property in new trustees
Powers of new trustees
76. Survival of trust
CHAPTER VIII
OF THE EXTINCTION OF TRUSTS
77. Trust how extinguished
78. Revocation of trust
79. Revocation not to defeat what trustees have duly done
CHAPTER IX
OF CERTAIN OBLIGATIONS IN THE NATURE OF TRUSTS
80. Where obligation in nature of trust is created
81. Where it does not appear that transferor intended to dispose of beneficial interest
82. Transfer to one for consideration paid by another
83. Trust incapable of execution or executed without exhausting trust-property
84. Transfer for illegal purpose
85. Bequest for illegal purpose
Bequest of which revocation is prevented by coercion
86. Transfer pursuant to rescindable contract
87. Debtor becoming creditor’s representative
88. Advantage gained by fiduciary
89. Advantage gained by exercise of undue influence
90. Advantage gained by qualified owner
91. Property acquired with notice of existing contract
92. Purchase by person contracting to buy property to be held on trust
93. Advantage secretly gained by one of several compounding creditors
94. Constructive trusts in cases not expressly provided for
95. Obligor’s duties, liabilities and disabilities
96. Saving of rights of bona fide purchasers
 
 

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Ministry of Law, Justice and Parliamentary Affairs