• Can a trustee be removed and single trustee for regt as trust

Sir,
I and my father are both trustee of family trust. I have given the land to the trust. I am now the Chairman of the trust and my father trustee. Can my father release himself from the trust and make me sole trustee? Can I also register as sole trustee of the trust? Or Can this trust be dissolved and the land registered again in my name?
Asked 5 years ago in Property Law
Religion: Hindu

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19 Answers

The settlor, that is, the person who had initially transferred property and created a trust provided there were powers of revocation reserved by him as per the trust deed. The settlor may exercise the power of revocation and revoke such trust by way of registered deed of revocation

2) trustee cannot resign without the permission of the court unless the trust instrument so provides or unless all of the beneficiaries who are legally capable to do so consent to the resignation. The court usually permits the trustee to resign if continuing to serve will be an unreasonable burden for the trustee and the resignation will not be greatly detrimental to the trust.

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. There should be minimum of atleast Two trustees. IF one trustee has resigned, THEN another Trustee should be appointed and the district Charity Commissioner should be duly informed about the same.

2. Trust will have to be dissolved with its assets & liabilities by order of Charity Commissioner and the property may be transferred to individual /several trustee's name, as per the clauses of the dissolution deed.  The same has to be duly informed to the Income Tax dept.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Land cannot be transferred back to tour name.

Rather you can be sole trustee 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Everything is possible. 

Please go through the clauses of your trust deed for appointment, retirement, admission of and dismissal of trustee.

There must be clauses embodied for the process of dissolving the trust.

Please go through the clauses or ask for consultation and review from Lawyers by allowing them to read and advice you. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

It all depends upon the rules and regulations under which the trust has been formed by you. What are the terms and conditions under which the trustees are appointed and removed? Look in ti the rules.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You can be sole trustee if trust deed dose not prohibit otherwise have to amend trust deed.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

1. The functions of trustees as well settler depends on the terms of the trust deed.

2. In other words everyone involved with the trust is to conduct himself as per the power given by the trust deed including the issues relating to termination, retirement .

3. Now if on any issue the trust deed is silent then the trustees can go to court for obtaining necessary direction. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

Minimum 2 members are required. You need to add one more trustee or dissolve the trust and then tramsfer

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

If the trust involved in a revocable trust, the Settlor always has the option to modify or revoke the trust.

As such, the Settlor can remove a Trustee if the trust is revocable.

As per section 77 of the Indian Trust Act,1882, a trust may be extinguished or terminated if “its purpose becomes unlawful”.

However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary.

Accordingly, there is no provision under the various Public Trusts Acts to legally terminate or dissolve a valid public charitable trust.

However, the assets and liabilities of the trust can be transferred to another charitable trust having similar objects thereby the former trust can be dissolved.

But a revocable trust can be dissolved as per the terms and conditions of the trust deed.


3 Ways to Terminate a Discretionary Trust

  1. Revoking a Trust. The trust deed may give power to the trustee or settlor of the trust to formally revoke the trust. ...
  2. Terminating a Trust With the Consent of the Beneficiaries. In certain circumstances, you can dissolve a discretionary trust with the consent of the beneficiaries. ...
  3. Court Order.

A trust can be cancelled on the following grounds as per Sec. 78 of The Indian Trust Act 1882:

a) Trust can be cancelled at the will of the trustees;

b) Trust can be cancelled if there is provision for cancellation in the deed.

c) If author of a trust creates trust for the purpose of repayment of his debt and if this is nor informed to the creditor author can cancel the trust. n law a settlor is a person who settles property on trust law for the benefit of beneficiaries.

In some legal systems, a settlor is also referred to as a trustor, or occasionally, a grantor or donor.

Where the trust is a testamentary trust, the settlor is usually referred to as the testator. The settlor may also be the trustee of the trust (where he declares that he holds his own property on trusts) or a third party may be the trustee (where he transfers the property to the trustee on trusts).

. Capacity to be a trustee is generally co-extensive with the ability to hold and dispose of a legal or beneficial interest in property.

In practice, special considerations arise only with respect to minors and mentally incapacitated persons.


T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

The trust can be dissolved if the object of the trust is fulfilled or by the trustees by mutual consent or majority resolution, if the trustees were so empowered by the settler of the trust through the trust deed or through the direction of the court on application filed by the trustees/beneficiary .

So act accordingly.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

private trust may get dissolved or extinguished on certain grounds:

 

 

    • When the purpose of the trust is complete

 

 

 

    • If a certain period is mentioned in the trust instrument, then trust shall end after the expiry of such period.

 

 

    • If the property is not used for the purpose for which trust is made.

 

 

 

    • the purpose becomes unlawful after the introduction of a new legislation.

 

 

    • If the trust property is destroyed[

 

 

    •  

 

 

    • , and

 

 

    • When the trust is expressly revoked by the settlor[

 

 

 

 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

A private trust created may either be inter vivos or ambulatory (revocable).

A private trust may get dissolved or extinguished on certain grounds:

  • When the purpose of the trust is complete.
  • For example, A conferred a property on B and told him to use the trust-property for C’s marriage.
  • Then after C’s marriage, the purpose of the creation of trust ends, and thus the trust gets dissolved.
  • If a certain period is mentioned in the trust instrument, then trust shall end after the expiry of such period.
  • If the property is not used for the purpose for which trust is made.
  • If A gives property to B for the purpose of C’s education, but the property is used as a capital for business, then the settlor may dissolve the trust.

The dissolution of a revocable trust should begin with reading the trust document to find out if it requires any particular actions. 

You also need to check your state's law to see if there are any specific revocation requirements.

Part of the creation of your trust involved transferring assets into the trust, which is called funding the trust. This likely involved executing deeds and other title transfer documents to transfer title to real estate and personal property from you to the trust. You will now need to reverse that process. This requires the trustee to execute similar documents to transfer title from the trust back to your personally.

With most revocable trusts, the grantor is also the trustee. If you designated someone else as trustee, you will need to have the trustee make the transfers.

The trust was created by a written document, and the dissolution of the trust requires a written document. While your trust document no doubt consists of numerous pages, a revocation typically consists of less than one page.

The revocation will include the official name of the trust, the date of the trust, where the trust was created, the name of all grantors, and a statement to clearly indicate your intent to revoke the trust.

The revocation document should be dated, and signed by all grantors before a notary public. Look at your trust agreement to see how it was signed. The revocation should be done in the same manner

The revocation should be kept with the original trust agreement and your other important papers. In some states a revocable trust is registered with a court. If that is the case, the trust revocation document should also be filed with the court.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You can give application to charity commissioner to dissolve the trust 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1. File proper application for dissolution, by following due procedures of law, before the registering authority (district charity commissioner officer).

2. The authority would issue directions to comply, which you would have to comply with. Thereafter Authority will issue order withdrawing the registration & dissolving the Trust. 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Definitely I can answer you lawfully before that kindly go through the following and comply for your grievances as under:-

 

1-I would like to know whether your trust is registered under Central or State Trust Act?

2-I would like to know whether you have trust deed ?

3-I would like to know whether you have registered your trust deed?

4-Please furnish a copy of registered trust trust deed.

5- I would definitely recommend solution and answer your all questions lawfully for dissolution of trust.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Pass resolution in a board meeting to dissociate the trust and communicate the decision to registrar to unregister  trust.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

No your father cannot release himself from post of trustee as there should be minimum two trustees for operation of trust. 

 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

You have to visit the registrar office and file an application for the dissolution of the trust.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

- The person who set up the trust can change it or revoke it at any time, and can change the trust at any time, and also change the beneficiaries at any time.

- However, you should comply the terms of the trust deed , and if the deed is silent , then the trust can be dissolved by mutual consent.

- Otherwise , a court order is needed . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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