The Official Trustees Act, 1913
The Official Trustees Act, 1913 is a Central Act that creates the office of the Official Trustee, sets out how Government appoints an Official Trustee for a State, and explains when that officer can hold trust property. It also states the powers, limits, court role, fees, audit and related procedures for property vested in an Official Trustee. The text provided shows that some provisions and the Schedule have been repealed, and that the Act has also been amended in its application to the former province of Bengal and extended to certain territories.
What this law is about
The Official Trustees Act, 1913 is a Central law on the office of the Official Trustee. It says that Government appoints an Official Trustee for each State, allows the same person to be appointed for two or more States, and gives that office a separate legal identity with perpetual succession, an official seal, and the ability to sue and be sued in its corporate name.
Who it affects
The Official Trustees Act, 1913 matters to people dealing with trust property, especially:
- a person creating a trust
- a person making a will
- executors and administrators of estates
- private trustees who want the Official Trustee to take over
- beneficiaries, including minors
- people involved in High Court proceedings about trust property
What the Official Trustee can do
Under the Official Trustees Act, 1913, the Official Trustee may:
- act as an ordinary trustee
- be appointed trustee by a Court of competent jurisdiction
- accept appointment under a trust instrument, if the Official Trustee consents
- be appointed under a will, if the Official Trustee consents and the required transfer is made
- be appointed by the High Court where there is no trustee within the local limits of the High Court's original civil jurisdiction willing or capable to act
- be appointed by existing private trustees, with the consent of all persons beneficially interested and with the Official Trustee's consent
- receive a minor's gift, legacy or share of a deceased person's assets by written transfer, with consent
Important limits and protections
The Official Trustees Act, 1913 also places clear limits on the role:
- the Official Trustee may decline a trust, absolutely or on conditions
- the Official Trustee cannot accept a trust under a composition or scheme of arrangement for creditors, or an estate known or believed to be insolvent
- the Official Trustee cannot, except as rules may allow, accept a trust for a religious purpose or one involving management or carrying on of any business
- the Official Trustee cannot administer a deceased person's estate unless expressly appointed sole executor and sole trustee under the will
- the Official Trustee must always be sole trustee, and cannot be appointed along with another person
- no Court can require the Official Trustee to give bond or security on appointment under the Act
Court, audit and other matters covered
The arrangement of sections shows that the Official Trustees Act, 1913 also covers:
- fees and disposal of fees
- audit of the Official Trustee's accounts and reports to Government
- auditors' powers to summon witnesses and call for documents
- a beneficiary's right to inspect and obtain copies of accounts
- transfer to Government of accumulations in the hands of the Official Trustee
- claims to recover money so transferred
- High Court orders regarding property vested in the Official Trustee
- transfer of trust property by the Official Trustee to the original trustee or another trustee
- rule-making powers
- savings relating to the Indian Registration Act, 1908, and other saving provisions
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can the Official Trustee be appointed together with another trustee?
No. The Official Trustees Act, 1913 says the Official Trustee shall always be sole trustee, and it is not lawful to appoint the Official Trustee along with any other person.
Can a person creating a trust name the Official Trustee in the trust document?
Yes, if the trust is not one the Official Trustee is prohibited from accepting, and if the Official Trustee consents. The consent must be recited in the instrument creating the trust, and the instrument must be duly executed by the Official Trustee.
Can the High Court appoint the Official Trustee when no suitable trustee is available?
Yes. The High Court may appoint the Official Trustee, with his consent, if property is subject to a trust that the Official Trustee is allowed to accept and there is no trustee within the local limits of the High Court's original civil jurisdiction willing or capable to act.
Are there trusts that the Official Trustee cannot accept?
Yes. The Official Trustees Act, 1913 says the Official Trustee shall not accept a trust under any composition or scheme of arrangement for the benefit of creditors, or of any estate known or believed to be insolvent. Except as rules may provide, the Official Trustee shall also not accept any trust for a religious purpose or any trust involving the management or carrying on of any business.
