2 Formation and Administration of Trusts in Nepal

The statutory frame (by principle):1. Creation: the settlor's instrument (the trust deed — the nyas-patra/endowment charter) declaring purposes, property, trustees and powers; the endowment's transfer (registration for immovables — the Malpot route); acceptance by the trustees;2. The governing statutes: the Nepal Trust Act, 2064 (2008) — the general trust framework (registration of trusts; the trustees' duties and liabilities; the trust property's administration; the state's supervision and, in defined cases, the intervention/recovery of trust property); the Guthi Corporation Act, 2033 (the guthi endowments' special regime — the Guthi Sansthan's management of the public endowments); the Civil Code 2074's trust provisions (the general private-law of trusts — creation, trustee's office, beneficiaries' rights, termination) — and the companion regimes: the Association Registration Act, 2034 (the NGO/company forms the charitable sector actually uses), the Social Welfare Council Act, 2049 (the NGO/ INGO coordination-and-approval machinery), the company and cooperatives statutes for the entity variants;3. Administration: the trustees'/board's fiduciary duties (loyalty, prudence, accounting — the investment and leasing of trust land under the instrument's and the statute's limits); the registers and audits; the guthiyar's traditional office under the modern controls;4. The state's supervisory powers: inspection, the removal of defaulting trustees, the temporary administration of mismanaged trusts, and the recovery of alienated endowment property (the Sansthan's and the Trust office's litigation — the guthi-land recovery dockets);5. Termination/modification:…