LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Smita_L01042008 (student)     28 April 2011

Liability of trustees of the trust

Dear Members, please guide with respect to liability of the trustee of the trust. 1. whether legal heirs, executors & administors of trustee can be held responsible for act and liability of the trustee? 2. what is liability of trust and ite trustees? regards to all


 4 Replies

Gagan Gupta (Advocate)     29 April 2011

Indian Trust act 1882 provides details

Trustees are responsible and can be made liable to compensate the trust if they breahed the trust at the behest of beneficiaries or settelor.

what is breach of trust depends upon trust deed and trust act.

Trustee is liable to run trust as per Trust deed.

Trustee's legal heirs or administrators/employees didnot have direct legal relations with beneficaries and so they dont have any direct responsibility and cant be made liable as trustee.

rest u can ask further.

Smita_L01042008 (student)     06 May 2011

Dear Mr. Gagan Gupta,


Thanks alot for you reply. Sir, can you please guide whether trust deed can be changed or modified, to what extent and what is process for the same. the trust is registered under bombay public trust act.


Gagan Gupta (Advocate)     09 May 2011

If there is some clause in trust deed one can change under that i.e. if trustee is autorised to modify etc. If nothing of this sort is available author still has power to modify. registration did not impact as such.

Parimal Shah (None)     05 April 2012

If the family trust   is one of the partner (49%)  in an LLP and the LLP is an excise registered manufacturing unit. The unit is run by  managing partner who share is  51% ( other than the trustee of the family trust) .

a/ IS the turstee exposed to any statutory liabilites on personal basis - can  excise / ppf / IT /VAT or any govt department initiate any proceeding against the trustee ( who is not managing the LLP)

b/ Are the assests of the trust attachable in case of any such statutory liabilites.

c/ Are the beneficiaries exposed to any such statutroy liabilites.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register