Selling property held in a private family trust can be a complex process, and whether you need court permission depends on several factors, including the terms of the trust deed and local laws. Here are some general guidelines:
- Trust Deed Provisions: The trust deed is the primary document that outlines the powers and limitations of the trustees. If the trust deed explicitly grants the trustees the power to sell the property without court permission, then they may proceed accordingly. However, if the trust deed requires court approval for such transactions, then permission must be obtained.
- Beneficiaries' Interests: Trustees have a fiduciary duty to act in the best interests of the beneficiaries. If the sale of the property is necessary for the urgent needs and necessity of the beneficiaries, this may be a valid reason to seek court approval if required.
- Local Laws: In some jurisdictions, selling trust property, especially if it involves minors or vulnerable beneficiaries, may require court approval regardless of the trust deed's provisions. For example, the Delhi High Court has stated that no trust property can be sold, mortgaged, or exchanged without prior court permission.
- Legal Advice: It is advisable to consult a lawyer who specializes in trust and property law. They can provide specific guidance based on the trust deed and local legal requirements.
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Can a private family trust property be sold without getting permission from the court for their urgent needs and necessity?
Our family has a private trust that owns some old family property. Due to urgent financial needs, we are thinking of selling a part of it. But we’re not sure if we can do that without getting permission from the court. Is it legally allowed to sell trust property in such situations?
V ramamurthy
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9 months
2025-02-18T11:19:48+00:00 2025-08-01T16:42:20+00:00Comment
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