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Transfer of trust property

by | 7 May, 2016 | Property Law

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My grandfather has created a trust for the construction and running of a school. He had appointed my father as trustee. My grandfather died in the year 1974. My father dies in the year 2015. This trust is created by a Will, according to it I am the trustee of this trust but I came to know that my father has transferred this right and appointed Mr X as trustee. It is a private trust and father has no right to appoint another person as trustee. I have filed a civil suit, which is the possibility to win.

According to section 6 of the trust act, trust can be created by a will. Difference between private trust and public trust is depending upon the character of a person whose benefit the trust is created.

For the private trust the beneficiaries are defined and ascertained individuals who within a definite time can be defined. When the beneficiaries are the uncertain and fluctuating body of person either the public at large it is called public trust.

In private trust beneficial interest is vested absolutely in one or more individual who is or within certain time may be ascertained. Your grandfather had created a trust for the benefits of society; the object of the trust is to serve society. All the students of the school are the beneficiaries of the trust thus it is a public trust.

If the right to appoint a trustee is not given by the Will hence the appointment of a new trustee by your father is invalid. In Sri Dhar vs Mahant Manohar Das OC 236: it is held by the High Court of Allahabad that appointment of a new trustee is void if such right to appointment is not given by the author.

Your father has no authority to appoint any other person as a trustee on his place. In exigency, a new trustee may be appointed with the permission of the court. Trusty is like a manager or a guardian of an infant and not that of the owner to entertain a right which is not authorized by the author.

It cannot be said that what will be the decision of your case, but you have sufficient evidence to prove that appointment of the new trustee is void.

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