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Official Trustee's Act, 1913

Act· 1913· 11 pages
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Summary

This 1913 act creates the statutory office of Official Trustee in each province of Pakistan, giving individuals, courts, and other trustees a government-backed alternative to a private trustee. Section 4 requires the Provincial Government to appoint an Official Trustee, who must either be an advocate practising in a High Court or already in state service, and Section 5 allows Deputy Official Trustees to be appointed to assist. Section 6 makes the Official Trustee a "corporation sole" — a single-person legal entity with perpetual succession and an official seal, able to sue and be sued in that capacity.

Chapter III sets out how the Official Trustee can come to hold a trust. Section 7 lets the Official Trustee act as an ordinary trustee or accept court appointment, but bars it from taking on trusts tied to insolvent estates, and (unless rules permit) from religious-purpose trusts or trusts that involve running a business; the Official Trustee must always act as sole trustee, never jointly with another person. Section 8 allows someone creating a trust to appoint the Official Trustee as trustee with its consent; Section 9 allows appointment by will; and Section 10 allows the High Court to appoint the Official Trustee where no willing or capable trustee exists locally. Section 13 notably says the Official Trustee does not need to give a bond or security, unlike an ordinary trustee.

Chapter IV (Sections 17-18) covers the fees the Official Trustee may charge and how they are accounted for, while Chapter V (Sections 19-22) requires the Official Trustee's accounts to be audited, gives auditors power to summon witnesses and call for documents, and gives beneficiaries a right to inspect and obtain copies of the accounts.

Chapter VI's miscellaneous provisions include Section 23, which lets the government transfer to itself accumulated funds sitting unclaimed in the Official Trustee's hands (with Section 24 setting out how a claimant can later recover such money), and Sections 25-27, which let the High Court make orders regarding trust property vested in the Official Trustee, with such an order taking effect as a decree. Section 30 gives the government rule-making power over the Official Trustee's accounts, safe custody of funds, and fees. This is an old 1913 act with several amendments (notably by Adaptation Orders in 1937 and 1949, and a 1981 Revision Ordinance), so current details should be checked against up-to-date sources.

Key topics

Official Trustee officetrust administrationstatutory trusteeshipunclaimed trust fundstrustee accounts and audit

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