Question

    Which of the following is a primary duty of a trustee

    under the Indian Trusts Act, 1882?
    A To make a profit out of trust property for personal benefit Correct Answer Incorrect Answer
    B To mix trust property with their own property Correct Answer Incorrect Answer
    C To act with utmost good faith and protect the trust property Correct Answer Incorrect Answer
    D To follow beneficiary's personal instructions over the trust deed Correct Answer Incorrect Answer
    E To transfer trust property to their legal heirs Correct Answer Incorrect Answer

    Solution

    As per Section 11 of the Indian Trusts Act, 1882, one of the core duties of a trustee is to act prudently, in good faith, and to protect and preserve the trust property for the benefit of the beneficiaries. The trustee must not make personal gains out of trust property and is legally bound to act in accordance with the terms of the trust deed. Mixing trust property with personal assets or acting outside the scope of the trust is a breach of trust.

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