Vol. 12 · pages 361–365

CHAPTER IV The Extinction of an Express Trust Sec. 77. 1. A trust comes to end in the following cases— (i) When the purpose is completely carried out. (ii) When its purpose becomes unlawful. (iii) When the fulfilment becomes impossible. (iv) When the trust being revocable is expressly revoked. (v) If there is only one beneficiary or if there are several (whether entitled concurrently or successively) and they are or they are not under any disability (such as infant, lunatic) the trust may be extinguished by them without reference to the wishes of the settor or the trustees. 2. The terms for the extinction of a trust are the same as those for the extinction of a contract. 1. Two questions remain to be considered. (i) When does a trust becomes administrable ? (ii) What estate does the Trustee and Beneficiary have in the trust ? 2. These questions are preliminary to the question of the administration of the turst. I. When does a trust begin to function ? A trust becomes administrable when it has been accepted by the Trustee and the beneficiary— I. DISCLAIMER AND ACCEPTANCE OF A T RUST Acceptance Art. 34=Sect. 10. 1. Although the author of the trust may appoint a person as a trustee, the person so appointed is not bound to accept such appointment. 2. A person appointed to the office of a trustee may accept the office or he may disclaim it. 3. The acceptance of the office may be indicated expressly or by conduct. If it is by conduct it must indicate with reasonable certainty such acceptance.

341THE LAW OF TRUST Illus.—A by his will bequeaths certain properties to B and C as Trustees for D, B and C prove A’s will. On a question being raised whether B and C had accepted the office of Trustee, held that their conduct in proving the will was tantamount to acceptance of office. 4. Other illustrations of acceptance by conduct are :— (i) Acceptance by acquiescence—Permitting an action regarding trust property being brought in his name. (ii) Acceptance by exercising dominion over the trust property— such as advertising for sell—giving notice to tenants. (iii) Acceptance by dealing with property—unless the dealing is plainly referable to some other ground. (iv) Acceptance by long silence with notice of the trust and in the absence of any satisfactory explanation of the silence. (v) Acceptance of a part of the trust is acceptance of the whole, notwithstanding any attempted disclaimer of part. 5. The law does not say how a disclaimer is to be made by a trustee who does not wish to accept the office. It only says that a trustee must do so within reasonable time. 6. Although the law is silent on the point, the following points with respect to disclaimer have been settled by judicial decisions— (i) The disclaimer should be before acceptance. Once a trustee has accepted the office he can renounce it only under circumstances mentioned in section 46. (ii) A person can disclaim a trust although he may have consented to act as a trustee during the lifetime of the settlor. (iii) A person cannot disclaim the office as to a part of the trust and accept as to the rest. (iv) A disclaimer may be by words or by conduct. 7. Effect of disclaimer. (i) If there is only one trustee a disclaimer prevents the trust property from vesting in him. (ii) If there are two more trustees and if one of them disclaims, such a disclaimer vests the trust property in the other or others or makes him or them the sole trustee or trustees from the date of the creation of the trust.

342 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES 8. What happens when there is only one trustee and he disclaims. Two things can happen :— (i) A new trustee may be appointed under section 73— (a) By one mentioned in the trust. (b) If there be none such, by the settlor if alive and competent to contract. (ii) If no trustee is appointed in place of the one who has disclaimed the property reverts to the settlor or his representatives if he is dead. 9. What happens to the property ? Is it freed from the trust ? Does it remain subject to the trust ? The answer is that the trust is not extinguished. The settlor or his representatives, if the settlor is dead, holds it on trust for the beneficiary. In other words the settor or his representative becomes the trustee in place of the trustee who has disclaimed. The rule is that a trust will never fail for want of a trustee. Wherever a trust exists, and there is no trustee to execute it, the person in whom the legal estate vests holds the property as trustee. This rule is intended to protect the beneficiary. Mallott vs. Wilson (1903) 2 Ch. 494. II. DISCLAIMER AND ACCEPTANCE BY B ENEFICIARY— Section 9 1. A beneficiary is not bound to accept the trust. He may accept it or he may disclaim it. 2. His disclaimer amounts to a renunciation of his interest under the trust. 3. If he wishes to disclaim he can do so in two ways : (i) By a disclaimer addressed to the trustee or (ii) By setting up a claim inconsistent with the trust with the knowledge of the trust. 4. A claim inconsistent with the trust would be a claim such as ownership of the trust property. 4. What happens to the trust when the beneficiary disclaims ? III. THE ESTATE OF A TRUSTEE UNDER A TRUST. (Page left blank) IV. THE ESTATE OF A BENEFICIARY UNDER A TRUST. (Page left blank) zz