Trust Act, 1882

This 1882 Act defines the law of private trusts in Pakistan -- the legal arrangement where one person (a trustee) holds and manages property for the benefit of another (a beneficiary). Section 3 defines a "trust" as an obligation attached to property ownership, arising from confidence placed in and accepted by the owner, for someone else's benefit. It explicitly does not apply to Muslim law on waqf (religious endowments), joint family property governed by customary law, or public and private religious/charitable endowments (Section 1).

Chapter II covers how trusts are created: a trust must be for a lawful purpose (Section 4), and the Act sets out who can create a trust, who can be a trustee, and who can be a beneficiary (Sections 6-10). Chapter III is one of the most detailed parts, setting out a trustee's duties -- to actively carry out the trust, inform themselves of the state of the trust property, protect its title, act impartially between beneficiaries, keep proper accounts, and invest trust money prudently (Sections 11-20). Section 23 makes a trustee liable for any loss caused by breach of trust.

Chapter IV gives trustees corresponding rights and powers: to be reimbursed for expenses, to sell trust property (by auction or private contract), to convey property, to vary investments, and to apply trust property for a minor beneficiary's maintenance (Sections 31-45). Chapter V, by contrast, lists things a trustee cannot do: they cannot resign once they've accepted the trust without proper discharge, cannot delegate their role, cannot act alone if there are co-trustees, cannot charge for their services unless authorised, and critically, cannot use trust property for their own profit or buy it for themselves without permission (Sections 46-54).

Chapter VI covers beneficiaries' rights -- to receive rents and profits, to inspect trust documents and accounts, and to sue to enforce the trust (Sections 55-69). Chapters VII and VIII address how a trustee's role ends and how a trust itself can be extinguished or revoked. Chapter IX describes situations that create trust-like obligations even without a formal trust -- for example, when someone holds property that in fairness belongs to another (Sections 80-96). This is an old law (1882) that has been amended and, notably, is repealed to the extent of the Islamabad Capital Territory by Act XXV of 2020; readers should check current applicability and any recent amendments before relying on specific provisions.