1. INTRODUCTION:
Under
Trust Act 1882, every person is capable of holding property as a beneficiary.
He is the person for whose benefit the confidence reposed is accepted.
Beneficiary is entitled to each and every benefit specified by the author of
the trust. He may cease to have beneficial interest in a trust on the happening
of a contingency.
2.
RELEVANT PROVISIONS
Sec
55 to 61 of Trust Act 1882
3.
DEFINITION
Sec.
3 of trusts act defines the person for whose benefit the confidence is accepted
is called the beneficiary.
4.
WHO MAY BE BENEFICIARY
According
to Sec. 9 every person capable of holding property may be beneficiary. In other
words every person capable of holding property may be a beneficiary. He is not
bound to accept the interest under trust.
5. RIGHTS OF BENEFICIARY UNDER TRUSTS ACT
Following
are the rights of a beneficiary under trust Act.
I. RIGHT
TO RENT AND PROFIT
The
beneficiary has, subject to the provisions of the instrument of the trust, a
right to the rents and profit of the trust property.
II.
RIGHT TO SPECIFIC EXECUTION
The
beneficiary is entitled to have the intention of the author of the trust
specifically executed to the extent of the beneficiary's interest and where
there is only one' beneficiary and he is competent to contract, or where there
are several beneficiaries and they are competent to contract, and all one mind,
he or they may require the trustee to transfer the trust property to him or
them, or to such person as he or they may direct.
III.
RIGHT OF INSPECTION
The
beneficiary has a right, as against the trustee and all persons claiming under
him with notice of the trust, to 'inspect and take copies of the instruments of
the trust, the document of title relating solely to the trust property, the
accounts of the trust property and the vouchers (if any) by which they are
supported, and the cases submitted and opinions taken by the trustee for his
guidance in discharging of duty.
He
can make inspection of following
i.
Instrument of trust
ii.
The documents of title relating solely to the trust property.
iii.
The vouchers
iv.
Cases if any pending in the court of law.
IV.
RIGHT TO TRANSFER BENEFICIAL INTEREST
The
beneficiary if competent to contract, may transfer his interest, but subject to
the law for time being enforce as to the circumstances and extent but this
debar married women to transfer or assign her beneficial interest during her
marriage.
V.
RIGHT OT SUE FOR EXECUTION OF TRUST
Where
no trustees are appointed or all trustees die, disclaim, or are discharged, or
where for any other reason the execution of the trust by the trustee is or
becomes impracticable the beneficiary may institute a suit for execution of the
trust, and the trust shall; so for as may be possible, be executed by the court
until the appointment of a trustee or new trustees possible, be executed by the
court until fiat appointment of a trustee or new trustees.
VI,
RIGHT TO PROPER TRUSTEE
The
beneficiary has a right (subject to the provisions of the instrument) that the
trust property shall be properly protected and held and administered by proper
person and by a proper number of a such
persons.
Following
are not proper trustee
a. A
persom domiciled abroad
b.
An alien enemy
c. A
person who has conflicting interest with that of the beneficiary
d.
An insolvent person
e. A
minor
f. A
married woman
VII.
RIGHT TO COMPLE TO ANY ACT OF DUTY
The
beneficiary has a right that his trustee shall be compelled to perform any
particular act of his duty as such and restrained from committing any
contemplated or probable breach of.
VIII.
RIGHT TO PROCEED AGAINST TRUSTEE
Where
a trustee has wrongfully brought trust property, the beneficiary has a right to
have the property declared subject to the trust or retransferred by the trustee
it remains in his hand unsold.
IX.
RIGHT TO FOLLOW TRUST PROPERTY
The
beneficiary has right to follow trust property, When it came into the hands of
a third person inconsistently with the trust.
X.
RIGHT TO HAVE RECONVERTED
Inverted
into trust property where a trustee wrongfully sells A beneficiary has right to
have the property the trust property and afterwards becomes the owner, of such
property.
XI.
RIGHT IN BLENDED PROPERTY
Where
the trustee wrongfully mingles the trust property with his own, the beneficiary
is entitled to charge on the whole fund for the amount due to him.
XII.
RIGHT TO INSPECT ACCOUNTS
Beneficiary
has right to Inspect accounts of the Trust Property.
CONCLUSION
To
conclude I can say that the beneficiary is the person for whose benefit the
confidence is accepted. Under trust act he is entitled to each and every benefit
according from the subject matter of the trust property. The beneficiary is
important person because a trust is controlled not only by the instrument of
trust and the court, but also by the beneficiaries and norms of equity.
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