| Question And Answer | |
|---|---|
| Subject: | Private Family Trust |
| Category: | Income-Tax |
| Querist: | Manoj |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Private Trust, Taxation of Trusts, Trust deed |
| Date: | April 28, 2022 |
Assessee is private family trust created by the setlor for the benefits of 4 minor sons of family. In the said trust father and mother of 4 sons were trustees. After few years one of the trustee was expired. The trust is later on run by the sole trustee. The sole trustee also expired after 2 years. Since 4 sons who were beneficiaries of the trust become major have decided to continue the trust by appointing two brothers out of 4 as trustees of the trust.
Whether action taken by trustee is legally correct ?
If not what action has to be taken, since family trust has not few immovable properties as asset ?
Pl guide.
The Trust deed would have to be read and understood. There might be a clause for a nomination or a clause for consequences on death of trustees. As per section 73 of Indian Trust Act, 1882, the Nomination in the trust deed would be appointed or else the legal representatives of the last surviving and continuing trustee with the consent of the court would be appointed as the Trustee