Section 50 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 50 sets the default for trustee pay: a trustee has no right to remuneration for his trouble, skill and loss of time in carrying out the trust, unless the instrument of trust, a contract with the beneficiary, or the Court says otherwise. The Act deals with private trusts; public, charitable and religious trusts are governed by other laws (see private vs public trust). If you want a trustee to be paid, the deed should say so, and our agreement drafting team can help you draft that clause.
In the absence of express directions to the contrary in the instrument of trust, or of a contract to the contrary entered into with the beneficiary or the Court at the time of accepting the trust, a trustee has no right to remuneration for his trouble, skill and loss of time. The section does not apply to any Official Trustee, Administrator General, Public Curator, or person holding a certificate of administration.
The text of section 50
The first paragraph reads: "In the absence of express directions to the contrary contained in the instrument of trust or of a contract to the contrary entered into with the beneficiary or the Court at the time of accepting the trust, a trustee has no right to remuneration for his trouble, skill and loss of time in executing the trust."
The second paragraph reads: "Nothing in this section applies to any Official Trustee, Administrator General, Public Curator, or person holding a certificate of administration."
In the scanned copy the heading and the first words of the section are damaged ("ln the absence"), but the sense is clear from the rest of the paragraph. The exact wording should be checked against the official text before it is quoted in a deed or a notice.
Limb by limb
| Limb | What it means |
|---|---|
| "In the absence of express directions to the contrary" | The rule is a default; it applies only if nothing else has been agreed |
| "contained in the instrument of trust" | The deed can authorise remuneration |
| "or of a contract to the contrary entered into with the beneficiary or the Court" | A separate contract can also do it |
| "at the time of accepting the trust" | The contract is to be made when the trustee accepts the office |
| "no right to remuneration for his trouble, skill and loss of time" | A trustee cannot demand payment for his effort, expertise or time |
| Official Trustee, Administrator General, Public Curator, certificate-holder | These are outside the section |
Three ways a trustee can be paid
The text names three sources of authority, and each has its own wording.
- The instrument of trust. An "express direction" in the deed. The word "express" means the clause should be written down, not implied.
- A contract with the beneficiary. The section speaks of a contract "entered into with the beneficiary" at the time of accepting the trust. The text does not say what happens where there are several beneficiaries, or where a beneficiary is a minor; those points are not answered by the section, and should be taken up in the deed.
- A contract with the Court. The text says "or the Court" at the time of accepting the trust. It does not say how this works in practice, and this article does not add procedure that the section does not state.
What section 50 does not say
- It does not set an amount or a rate. Any figure must come from the deed or the contract.
- It does not say whether trust expenses (such as travel or professional fees paid out of pocket) are covered; reimbursement of expenses is a different subject, dealt with in rights of trustees: reimbursement and indemnity and in sections 31 and 32.
- It does not say how remuneration is taxed. See our income-tax guides for that.
- It states no consequence for a trustee who takes pay without authority. The general rules on breach of trust apply.
No illustrations
The text of section 50 has no illustration.
A modern example of our own
Ramesh Gupta creates a private trust for his two grandchildren and names his nephew, Sunil, as trustee. The deed says nothing about pay. Sunil spends many hours each month on the accounts and visits to the property. Under section 50 he has no right to remuneration for his trouble, skill and loss of time, because there is no direction in the deed and no contract of the kind the section names. If the deed had said, "The trustee shall be entitled to a monthly honorarium of an amount fixed by the settlor," that would be an express direction in the instrument of trust and the default would not apply.
A second example: Priya Menon is a chartered accountant who agrees to act as trustee on terms recorded in a written contract with the adult beneficiary at the time she accepts the office. The contract says she will be paid a stated sum for her professional work. That is the contract route in the section.
What the instrument of trust can change
The section is built around what the deed can change. A settlor who wants a professional trustee, such as a chartered accountant, lawyer or trust company, will normally want the deed to say how that trustee will be paid: a fixed amount, an hourly rate, or a method of working out the fee, and who approves it. The section gives no form of words, so the clause should be clear and specific. A vague clause invites disputes with beneficiaries.
Practical points
- Settlors: decide in advance whether the trustee is to be paid. If yes, write the amount or the method into the deed.
- Trustees: do not draw pay from trust funds unless the deed or a qualifying contract allows it. Keep the deed or contract on file.
- Beneficiaries: you can ask for the accounts, see section 19, to check that no unauthorised payments have been made.
- If a trustee is also a professional, record separately what is trustee remuneration and what is any other professional work for the trust.
Need help with a remuneration clause?
If you are setting up a private trust and want a trustee to be paid, the deed has to say so in express terms. Our agreement drafting team can prepare or review the clause, and the rest of the deed. Bring your draft and the names of the proposed trustees.
Key takeaways
- A trustee has no right to remuneration for his trouble, skill and loss of time, unless the instrument of trust or a contract with the beneficiary or the Court provides otherwise (s.50).
- The deed should say expressly if a trustee is to be paid.
- The section does not apply to an Official Trustee, Administrator General, Public Curator or person holding a certificate of administration.
- The section sets no amount and has no illustration.
- The Act deals with private trusts only.
Read next
- Sections 51 and 52: trustee may not use trust property for profit or buy it
- Sections 48 and 49: co-trustees must act jointly and control of discretionary power
- Rights of trustees: reimbursement and indemnity
Disclaimer: Based on the text of the Indian Trusts Act, 1882 as consulted on 1 October 2026 from a scanned copy; the Act applies to private trusts, and public, charitable and religious trusts are governed by other laws. This article is general information, not legal advice; check the official text and take advice before acting.