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THE INDIAN TRUST ACT,

1882

Prepared By:

CHETAN : 33
TARUN : 50
WAHID : 59
AJAY : 80
PRANIT : 10
BHARTI : 25
VANDANA : 43

Submitted To: MAHEK MANSURI

MAM

Subject : Business Law

Class : F.Y.Bcom.
(Banking &
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Insurance)

DEFINITION:

1) TRUST (Section 3);

A trust is an obligation annexed to the
ownership of property, and arising out of a
confidence reposed in and accepted by the
owner, or declared and accepted by him for the
benefit of another or of another and the owner

2) AUTHOR OF THE TRUST:

The person who reposes or declares the
confidence is known as the Author Of The
Trust. It is synonymous with creator, settler or
donor.

3) TRUSTEE:
The person who accepts the confidence and is
responsible to hold the trust property for the
benefit of the beneficiaries is known as
Trustee.

4) BENEFICIARY:
The person for whose benefit the trust is
created is known as the Beneficiary. Author of
the trust can himself be one of the beneficiary.
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Classification Of
Trust

Public Private
Trust Trust

Religio Charita Discretion Definit Oral

us ble ary e Trus
Trust Trust Trust Trust t
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CLASSIFICATION OF TRUSTS:

1)Public Trust:
When the trust is constituted for the benefit of
the at large or of some considerable portion of it
answering a particular description it is a public
trust. A public trust is of permanent and
indefinite character. In public trust beneficiaries
are not capable of ascertainment. Such trusts are
generally created for public support and
convenience.

a)Religious Trust:
A trust is known as religious trust; if it is
constituted to uphold and promote particular
religion, propagate views of a particular religion,
to maintain a particular religious place, etc.
E.g. Trust constituted for maintaining a temple,
Parsee Trust.

b)Charitable Trust:
Charitable trust comes in the category of public
trust. Charitable trust means a trust created for
philanthropic purpose. The main object of
charitable trust is the general welfare of the
community at large.
2)Private Trust
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When the beneficial interest is limited to specific

individuals or definite ascertainable individuals
it is a private trust. In private trust the beneficial
interests vested in some individuals who are
defined and ascertained or who within definite
time can be ascertained.
Private trusts concern only individuals or
families for private convenience and support.

a)Discretionary Trust:
A trust is regarded as discretionary trust, if the
income or any part thereof is specifically
receivable on behalf or for the benefit of any one
person or where individual share of beneficiaries
are indeterminate or unknown.

b)Definite Trust:
A trust is regarded as definite trust where the
shares of the beneficiaries are determinate or
known.

c) Oral Trust:
A trust, which is not declared by a duly executed
deed in writing, is considered as a oral trust.
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Sections 55 to 69 deal with rights and liabilities

of the beneficiary:

RIGHTS OF BENEFICIARY:

1)The beneficiary has, subject to the

provisions of the instrument of trust, a
right to the rents and profits of the trust
property.

2)The beneficiary is entitled to have the

intention of the Author of the trust
specifically executed to the extent of
beneficial interest.
E.g. A bequeaths Rs. 10,000 to trustees
upon trust to purchase an annuity for B
who has attained his majority and is
otherwise competent to contract. B may
claim Rs. 10,000.

3)Beneficiary has the right to inspect and

take copies of instrument and trust, title
deeds, trust property and other documents
relating to the trust.

4)If the beneficiary is competent to contract,

he can transfer his beneficial interest.
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5)Beneficiary has right to sue for execution

of trust, if no trustees are appointed or all
the trustees die, disclaim or are
discharged, or if the execution of trust
becomes impracticable.

6)The beneficiary has the right that the trust

property should be properly protected and
held and administered by proper persons.
Following are held to be not proper
persons:
• A person domiciled out of India.

• An alien enemy.

• A person having an interest inconsistent

with that of the beneficiary.

LIABILITY OF BENEFICIARY:
If a beneficiary commits breach of trust
or intentionally obtains any advantage there
from, without the consent of other beneficiaries,
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then other beneficiaries are entitled to have all

his beneficial interests impounded as against
him, until the lost caused by the breach has been
compensated.