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Essential Elements of Trust - According To Section 3 of The Indian Trusts Act, 1882

The essential elements of a valid trust under the Indian Trusts Act 1882 are: (1) one party (the author) transfers ownership of property to another (the trustee) with the intent of benefiting a third party (the beneficiary), (2) the relationship arises from the confidence placed in the trustee regarding the property, (3) the property can be used for the benefit of the beneficiary or both the beneficiary and trustee. For a trust to be valid it must indicate the intention to create a trust, identify the trust property, purpose, and beneficiary. The trust must be in writing and signed by the author or trustee for immovable property. A trust can be created by any competent person or minor with

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2K views1 page

Essential Elements of Trust - According To Section 3 of The Indian Trusts Act, 1882

The essential elements of a valid trust under the Indian Trusts Act 1882 are: (1) one party (the author) transfers ownership of property to another (the trustee) with the intent of benefiting a third party (the beneficiary), (2) the relationship arises from the confidence placed in the trustee regarding the property, (3) the property can be used for the benefit of the beneficiary or both the beneficiary and trustee. For a trust to be valid it must indicate the intention to create a trust, identify the trust property, purpose, and beneficiary. The trust must be in writing and signed by the author or trustee for immovable property. A trust can be created by any competent person or minor with

Uploaded by

Adan Hooda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Q. Explain the essential for the creation of trust under Indian trust act 1882.

Ans. Essential Elements of Trust - According to Section 3 of the Indian Trusts Act, 1882,
the following are regarded as essential elements of Trusts -
(i) The person creating the trust reposes confidence in the person in whom the ownership of
the property is vested by him, with intent, that it is to be held for the benefit of a third person.
(ii) The relationship arises out of confidence reposed in the owner of the property and is with
reference to the property that is vested.
(iii) The property so vested, may be utilised for the benefit of a third person or a third person
and the owner e.g., beneficiary or Cestui quo trust.
Creation of valid trust - Section 6 of the Indian Trusts Act, provides that no valid trust is
created unless the author of the trust indicates with reasonable certainty by any words or
acts -
(a) an intention on his part to create thereby a trust.
(b) the purpose of the trust,
(c) the beneficiary, and
(d) the trust property.
According to Section 5 of the Indian Trusts Act, no trust in relation to immovable property is
valid unless declared by a non-testamentary instrument in writing signed by the author of
the trust or of the trustee.
Further, no trust in relation to immovable property is valid unless declared as aforesaid or
unless the ownership of the property is transferred to the trustee.
Section 7 of the Indian Trusts Act lays down that "A trust may be created-
(a) by every person competent to contract, and
(b) with the permission of a principal Civil Court of original Jurisdiction, by or on behalf of a
minor.
Section 8 of the Indian trusts Act provides that "the subject matter of a trust must be
properly transferable to the beneficiary. It must not be merely beneficial interest under a
subsisting trust."
Section 4 of the Indian Trusts Act provides that "A trust may be created for any lawful
purpose". The purpose of a trust is lawful unless it is -
(a) forbidden by law; or
(b) fraudulent; or
(c) of such a nature that, if permitted, it would defeat the provisions of any law; or
(d) involves or implies injury to the person or property of another; or
(e) the Court regards it as immoral or opposed to public policy.

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