Uganda
Trustees Act
Chapter 164
- Commenced on 8 April 1954
- [This is the version of this document at 31 December 2000.]
- [Note: This legislation was revised and consolidated as at 31 December 2000 and 31 December 2023 by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
Part I – Preliminary
1. Interpretation
In this Act, unless the context otherwise requires—2. Application of Act
Part II – Investments
3. Authorised investments
A trustee may invest any trust funds in his or her hands, whether at the time in a state of investment or not, in the following manner—4. Discretion of trustees
Every power conferred by section 3 shall be exercised according to the discretion of the trustee, but subject to any consent or direction required by the instrument, if any, creating the trust or by law with respect to the investment of the trust funds.5. Power to retain investment
A trustee shall not be liable for breach of trust by reason only of his or her continuing to hold an investment which has ceased to be an investment authorised by the trust instrument or by the general law.6. Enlargement of powers of investment
7. Investment in bearer securities
8. Loans and investments by trustees not chargeable as breaches of trust
9. Liability for loss by reason of improper investment
10. Powers supplementary to powers of investment
11. Power to deposit money at bank and to pay calls
Part III – General powers of trustees and personal representatives
General powers
12. Power of trustees for sale to sell by auction, etc.
13. Power to sell subject to depreciatory conditions
14. Power of trustees to give receipts
15. Power to compound liabilities
A personal representative, or two or more trustees acting together, or, subject to the restrictions imposed in regard to receipts by a sole trustee not being a trust corporation, a sole acting trustee where by the instrument, if any, creating the trust or by law, a sole trustee is authorised to execute the trusts and powers reposed in him or her, may, if and as he or she or they think fit—16. Power to raise money by sale, mortgage, etc.
17. Protection to purchasers and mortgagees dealing with trustees
No purchaser or mortgagee, paying or advancing money on a sale or mortgage purporting to be made under any trust or power vested in trustees, shall be concerned to see that such money is wanted, or that no more than is wanted is raised, or otherwise as to the application of the money.18. Devolution of powers or trusts
19. Power to insure
20. Application of insurance money where policy kept up under any trust power or obligation
21. Deposit of documents for safe custody
Trustees may deposit any documents held by them relating to the trust, or to the trust property, with any banker or banking company or any other company whose business includes the undertaking of the safe custody of documents, and any sum payable in respect of the deposit shall be paid out of the income of the trust property.22. Reversionary interests, valuations and audit
23. Power to employ agents
24. Power to concur with others
Where an undivided share in the proceeds of the sale of land directed to be sold, or in any other property, is subject to a trust, or forms part of the estate of a testator or intestate, the trustees or personal representatives may (without prejudice to the trust for sale affecting the entirety of the land and the powers of the trustees for sale in reference thereto) execute or exercise any trust or power vested in them in relation to such share in conjunction with the persons entitled to or having power in that behalf over the other share or shares, and notwithstanding that any one or more of the trustees or personal representatives may be entitled to or interested in any such other share, either in his or her or their own right or in a fiduciary capacity.25. Power to delegate trusts during absence abroad
Indemnities
26. Protection against liability in respect of rents and covenants
27. Protection by means of advertisements
28. Protection in regard to notice
A trustee or personal representative acting for the purposes of more than one trust or estate shall not, in the absence of fraud, be affected by notice of any instrument, matter, fact or thing in relation to any particular trust or estate if he or she has obtained notice of it merely by reason of his or her acting or having acted for the purposes of another trust or estate.29. Exoneration of trustees in respect of certain powers of attorney
A trustee acting or paying money in good faith under or in pursuance of any power of attorney shall not be liable for any such act or payment by reason of the fact that at the time of the act or payment the person who gave the power of attorney was subject to any disability or was bankrupt or dead, or had done or suffered some act or thing to avoid the power, if this fact was not known to the trustee at the time of his or her so acting or paying; but—30. Implied indemnity of trustees
Maintenance, advancement and protective trusts
31. Power to apply income for maintenance and to accumulate surplus income during a minority
32. Power of advancement
33. Protective trusts
Part IV – Appointment and discharge of trustees
34. Limitation of the number of trustees
35. Power of appointing new or additional trustees
36. Supplemental provisions as to appointment of trustees
37. Evidence as to a vacancy in a trust
38. Retirement of trustee without a new appointment
39. Vesting of trust property in new or continuing trustees
Part V – Powers of the court
Appointment of new trustees
40. Power of court to appoint new trustees
41. Power to authorise remuneration
Where the court appoints a person or corporation, other than the public trustee, to be a trustee either solely or jointly with another person, the court may authorise the person or corporation to charge such remuneration for his or her or its services as trustee as the court may think fit.42. Powers of new trustee appointed by the court
Every trustee appointed by a court of competent jurisdiction shall, as well before as after the trust property becomes by law, or by assurance, or otherwise, vested in him or her have the same powers, authorities and discretions and may in all respects act as if he or she had been originally appointed a trustee by the instrument, if any, creating the trust.Vesting orders
43. Vesting orders of land
44. Orders as to contingent rights of unborn persons
Where any interest in land is subject to a contingent right in an unborn person or class of unborn persons who, on coming into existence would, in respect of the interest, become entitled to or possessed of that interest on any trust, the court may make an order releasing the land or interest in it from the contingent right, or may make an order vesting in any person the estate or interest to or of which the unborn person or class of unborn persons would, on coming into existence, be entitled or possessed in the land.45. Vesting order in place of transfer by infant mortgagee
Where any person entitled to or possessed of any interest in land, or entitled to a contingent right in land, by way of security for money, is an infant, the court may make an order vesting or releasing or disposing of the interest in the land or the right in like manner as in the case of a trustee under disability.46. Vesting order consequential on order for sale or mortgage of land
Where any court gives a judgment or makes an order directing the sale or mortgage of any land, every person who is entitled to or possessed of any interest in the land, or entitled to a contingent right in it, and is a party to the action or proceeding in which the judgment or order is given or made or is otherwise bound by the judgment or order, shall be deemed to be so entitled or possessed, as the case may be, as a trustee for the purposes of this Act, and the court may, if it thinks expedient, make an order vesting the land or any part of it for such estate or interest as the court thinks fit in the purchaser or mortgagee or in any other person.47. Vesting order consequential on judgment for specific performance, etc.
Where a judgment is given for the specific performance of a contract concerning any interest in land, or for sale or exchange of any interest in land, or generally where any judgment is given for the transfer of any interest in land either in cases arising out of the doctrine of election or otherwise, the court may declare—48. Effect of vesting order
A vesting order under any of the foregoing provisions shall, in the case of a vesting order consequential on the appointment of a trustee, have the same effect—49. Power to appoint person to convey
In all cases where a vesting order can be made under any of the foregoing provisions, the court may, if it is more convenient, appoint a person to transfer the land or any interest in the land or release the contingent right, and a transfer or release by that person in conformity with the order shall have the same effect as an order made under the appropriate provision.50. Vesting orders as to stock and things in action
51. Vesting orders of charity property
The powers conferred by this Act as to vesting orders may be exercised for vesting any interest in land, stock or thing in action in any trustee of a charity or society over which the court would have jurisdiction upon action duly instituted, whether the appointment of the trustee was made by instrument under a power or by the court under its general or statutory jurisdiction.52. Vesting orders in relation to infant’s beneficial interests
Where an infant is beneficially entitled to any property, the court may, with a view to the application of the capital or income of it for the maintenance, education or benefit of the infant, make an order—53. Orders made upon certain allegations to be conclusive evidence
Where a vesting order is made as to any land under this Act founded on an allegation of any of the following matters, namely—(a)the personal incapacity of a trustee or mortgagee;(b)that a trustee or mortgagee or the personal representative of or other person deriving title under a trustee or mortgagee is out of the jurisdiction of the court or cannot be found, or being a corporation has been dissolved;(c)that it is uncertain which of two or more trustees, or which of two or more persons interested in a mortgage, was the survivor;(d)that it is uncertain whether the last trustee or the personal representative of or other person deriving title under a trustee or mortgagee, or the last surviving person interested in a mortgage, is living or dead; or(e)that any trustee or mortgagee has died intestate without leaving a person beneficially interested under the intestacy or has died and it is not known who is his or her personal representative or the person interested,the fact that the order has been so made shall be conclusive evidence of the matter so alleged in any court upon any question as to the validity of the order; but this section does not prevent the court from directing a transfer or surrender or the payment of costs occasioned by any such order if improperly obtained.Jurisdiction to make other orders
54. Power of court to authorise dealings with trust property
55. Persons entitled to apply for orders
56. Power to give judgment in absence of a trustee
Where in any action the court is satisfied that diligent search has been made for any person who, in the character of trustee, is made a defendant in any action, to serve the person with a process of the court, and that the person cannot be found, the court may hear and determine the action and give judgment in the action against that person in his or her character of a trustee as if he or she had been duly served, or had entered an appearance in the action, and had also appeared by his or her advocate at the hearing, but without prejudice to any interest the person may have in the matters in question in the action in any other character.57. Power to charge costs on trust estate
The court may order the costs and expenses of and incident to any application for an order appointing a new trustee, or for a vesting order, or of and incident to any such order, or any transfer in pursuance of an order, to be raised and paid out of the property in respect of which the order is made, or out of the income of the property, or to be borne and paid in such manner and by such persons as to the court may seem just.58. Power to relieve trustee from personal liability
If it appears to the court that a trustee, whether appointed by the court or otherwise, is or may be personally liable for any breach of trust, whether the transaction alleged to be a breach of trust occurred before or after the commencement of this Act, but has acted honestly and reasonably, and ought fairly to be excused for the breach of trust and for omitting to obtain the directions of the court in the matter in which he or she committed the breach, then the court may relieve the trustee either wholly or partly from personal liability for the breach.59. Power to make beneficiary indemnify for breach of trust
Payment into court
60. Payment into court by trustees
61. Indemnity for acts done in pursuance of Act
This Act, and every order purporting to be made under this Act, shall be a complete indemnity to all persons for any acts done pursuant thereto, and it shall not be necessary for any person to inquire concerning the propriety of the order, or whether the court by which the order was made had jurisdiction to make it.Part VI – General provisions
62. Rules of court
The Chief Justice may make rules of court regulating the practice and procedure in respect of any proceedings in the High Court under this Act.63. Act binding on Government
The provisions of this Act bind the Government of Uganda.History of this document
31 December 2000 this version
Consolidation
08 April 1954
Commenced