Indian Trust Act easy to understand

The Indian Trust Act, 1882 Pradeep Kumar Patra Baripada, Orissa

Indian Trust Act, 1882

INDIAN TRUST ACT 1982 Sec. 3. TRUST is an obligation annexed to the ownership of property, arising out of confidence reposed in and accepted by the owner or declared and accepted by him for the benefit of another or another and the owner.

Indian Trust Act, 1882

• (i) The person who reposes or declares the confidence is called the Author of the Trust or settler. • (ii) The person who accepts the confidence is called the Trustee. • (iii) The person for whose benefit the confidence is accepted is called beneficiary. • (iv) The subject matter of the trust is called the Trust Property or Trust money.

Indian Trust Act, 1882

Sec 4. Lawful purpose A trust may be created for lawful purpose. The purpose of a trust is unlawful in the following cases: (i) If it is forbidden by law. (ii) If the trust is fraudulent. (iii) If the trust involves injury to the person or property of another.

Indian Trust Act, 1882

A trust with unlawful purpose is always void. However when a trust is having both lawful and unlawful purposes and two purposes cannot be separated the whole trust is void.

Indian Trust Act, 1882

Sec.5. To create a valid trust of immovable property it must be declared by will of the author or by non-testamentary instrument in writing signed by the author or trustee and registered. However in respect of movable property, the trust must be declared by a non-testamentary instrument and the ownership of the property is transferred to the trustee.

Indian Trust Act, 1882

Sec 6 Creation of trust : A trust is created when the author indicates with reasonable certainly by any words or acts. (i) An intention to create a trust. (ii) The purpose of the trust. (iii) Who are the beneficiaries. (iv) Identify the trust property and (v) Transfers the trust property

Indian Trust Act, 1882

Sec.19. Trustee is bound to keep clear and accurate accounts of the trust property and furnish full and accurate information as to the amount and state of trust property to the beneficiary.

Sec .23.Liability or breach of trust. If the trustee commits breach of trust he is liable to make good the loss sustained by the trust property or beneficiary along with

Indian Trust Act, 1882

Trustee will be liable in the following cases: • •

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(i) Where he has actually received interest. (ii) Where there is unreasonable delay in paying trust money to the beneficiary. (iii) Where the trustee ought to have received interest by has not done so.

Indian Trust Act, 1882

This will not apply if, •

•

(i) The beneficiary has by fraud induced the trustee to commit such breach (ii) Beneficiary, being competent to contract, has himself concurred in the breach.

Indian Trust Act, 1882

Sec trust

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68

Revocation of

A trust created by will may be revoked at the pleasure of the testator. A trust created otherwise may be revoked in the following cases: Where all the beneficiaries are competent to contract , by their consent.

Indian Trust Act, 1882

Sec trust 

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68

Revocation of

Where a trust has been declared by a non-testamentary instrument–in exercise of power of revocation expressly reserved to the author. Where a trust is created for the payment of debts of the author and has not been communicated to the creditors – at the pleasure of the author.

Indian Trust Act, 1882

Sec. 77. Trust how extinguished •

(i)When its purpose is completely fulfilled, or

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(ii)When its unlawful, or

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(iii)When fulfilment of its purpose become impossible by destruction of the Trust property, or

•

(iv)When

trust

purpose

being

become

revocable,

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