Whether a settior of a trust can act as managing trustee of the same trust? plz answer
Asked 2 years ago in Civil Law from ottapalam, Kerala
settlor can act as managing trustee of the trust
If there is a provision in the trust deed to this effect then he can act as the managing trustee. The answer to this question lies in the trust deed itself.
The bye laws of the trust will provide the answer for this question.
If the bye laws approve the settlor to become a managing trustee, there is no legal infirmity in it.
1. Settler of the trust can be a manager of trust property as trustee.
2. Such person has two distinct capacity
3. a person can transfer his property to himself he he bears different capacity.
4. Making of trust is an act of transfer of property.
5. Only living parson can transfer property.
6. property could be transferred from one capacity to another capacity.
7.Section 5 of Transfer of property act validates this type of transfer.
The settlor can be a managing trustee of the trust, provided there are other beneficiaries and other trustees also
The only situation which is not legally possible in trusts law is that in which the Settlor is the sole trustee holding the property for himself as sole beneficiary because all the rights to the trust property would be consolidated in a single person.