Yes brothers can be trustees for charitable trust
Can a trust made for charitable purpose, and currently running a school have two brothers (own) as their trustees among other trustees?
If it is still serving the purpose of substantial social benefit for some portion of the public (specially poor section).
Because I read it somewhere (I don't remember now) that there were certain restrictions with respect to the blood relatives...
Indian Trust Act 1882 deals with all the matters related to trusts, trustee and beneficiaries. According to section 10 of The Indian Trust Act, 1882, "Every person capable of holding property may be a truster; but where the trust the exercise of discretion, he cannot execute it unless he is competent to contract.
The position of trustee is an extremely important one, as trustees are in a fiduciary relationship with the trust's beneficiaries.
This means that they are in a special position of trust and accordingly have a number of significant duties.
If you are a trustee, it is vital that you familiarize yourself with those duties, as you can be liable for breach of trust if you don't fulfill them.
- If the trust is run by family and family is looking after all expenditure from own pocket than there is no such restrictions.
- Incase the funds are obtained from other sources than proper senate and corum is required to be maintained and position is given as per election of management.
- pls ensure to have the trust registered as govt post teesta and ford Foundation have brought strict scrutiny to such trust
Regards
Vivek Arya
Ok. So I understand that family members and relatives can be a part of the same trust and blood relatives are not an exception. This trust which I have been speaking about is one which runs and manages 2 schools. The beneficiary are children and the funds are raised through the fee received from the children.
You can proceed as advised to you and also based on the prevailing circumstances.
There's no legal infirmity in respect of the query raised by you earlier.
- W.r.t above given clarity on source of income of Trust, you can have the members in senate or management with presiding authority to monitor the daily affairs of trust.
- Further be informed the trustees can not get the right inherited and it has to be as the election by member.
- There are ample judgements clarifying above statement that the trustees can not get the right in trust by inheritance .
Regards
Vivek Arya