A, a trustee, uses the trust-property for the purpose of his own business, and makes profits. Under…
Illustration (b) to section 88 states that "A holds for the benefit of his beneficiary the profits arising from such user". A trustee may not use trust-property for his own…
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A, a trustee, uses the trust-property for the purpose of his own business, and makes profits. Under section 88 of the Indian Trusts Act, 1882, what is the position of those profits?
Answer and explanation
Correct answer D
Illustration (b) to section 88 states that "A holds for the benefit of his beneficiary the profits arising from such user". A trustee may not use trust-property for his own profit, and section 88 makes him hold any advantage so gained for the person he must protect. Paying interest alone is not his choice to make; under section 23 it is the beneficiary who may choose between interest and profits.