1. INTRODUCTION
Under
Trusts 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.
68 Trusts Act.
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 he 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. LIABILITY OF BENEFICIARY JOINING IN BREACH OF TRUST
According
to Sec. 68. Where one of several beneficiaries.
(a)
Joins in committing breach of trust, or
(b)
Knowingly obtains any advantage there on, without the consent of the other
beneficiaries or
(c)
Becomes aware of breach of trust committed or intended to be committed, and
either actually conceals it, or does not within a reasonable time take proper
steps to protect the interest of the other beneficiaries or
(d)
Has deceived the trustee thereby induced him to commit a breach of trust. The
other beneficiaries are entitled to have all his beneficial interest impounded
as against him and all who claim under him otherwise than as transferees for
consideration without notice of the breach, untitled the loss caused by the
breach has been compensated.
6. LIABILITIES AND DUTIES or BENEFICIARY
I. DUTY TO COMPENSATE TRUSTEE
Beneficiary
should compensate the trustee if he caused any injury or damage to the trust
property.
II. LIABILITY IN BREACH OF' TRUST
Beneficiary
is liable if he commits breach of trust.
III. LIABILITY NOT TO HARM OTHER INTEREST
Beneficiary
should not harm other interest He is liable if harms other interest.
IV. LIABILITY NOT OBTAIN ANY ADVANTAGE WITHOUT THE CONSENT OF BENEFICIARIES
Beneficiary
should not obtain any advantage without the consent of other beneficiaries.
V. LIABILITY TO RECEIVE HIS INTEREST
Beneficiary
is entitled to receive his interest but he should not claim more than his
interest in trust property.
VI. LIABILITY TO BECOME AWARE OF BREACH OF TRUST
Beneficiary
is liable to become aware of breach of trust and proceed against trustee for
such breach.
VII. LIABILITY IN CASE TO DECEIVE THE TRUSTEE
Beneficiary
is liable in case he deceive the trustee and induced him to commit a breach of
trust.
VIII. LIABILITY TO TAKE REASONABLE STEPS
Beneficiary
is liable in case if he fails to take reasonable steps within right and duties
of other beneficiaries.
7.
CONCLUSION
To
conclude I can say that under the Trust Act, the beneficiary is entitled to
some rights but he is also liable if he commits breach of trust, knowingly
obtains any advantage without the consent of other beneficiaries, becomes aware
of breach of trust and fails top proceed against trust: for such breath etc.
The beneficiary should cooperate with the trustee.
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