trust
Section 3 of the Indian Trusts Act, 1882 defines a trust as an obligation annexed to the ownership of property, arising out of a confidence reposed in and accepted by the owner, for the benefit of another (or of another and the owner). The person who reposes the confidence is the author of the trust, the one who accepts it is the trustee, and the one for whose benefit it exists is the beneficiary.
A valid trust needs the three certainties: certainty of intention, of subject matter and of beneficiaries (s.6). A trust of immovable property must be created by a registered instrument or by will (s.5). The Act applies to private trusts; public charitable and religious trusts are governed by other laws and by Section 92 CPC. Unlike English law, Indian law does not split legal and equitable ownership in the same way; the trustee is the owner.
Example
Since the settlor clearly intended the house to be held for his grandchildren, a valid private trust arose once he executed and registered the deed.
In Indian law
- Sections 3, 5 and 6, Indian Trusts Act, 1882; Section 92, Code of Civil Procedure, 1908
See also
cy pres · wakf · equity · shebait
Read more in the study notes
- Negotiation: meaning, styles and approaches (Alternative Dispute Resolution Systems)
- Mediation: meaning, the mediator and essential characteristics (Alternative Dispute Resolution Systems)
- Stages of mediation, models of mediation and code of conduct for mediators (Alternative Dispute Resolution Systems)
- Bank: definition, kinds of banks and their functions (Banking Law)
- The central bank and the Reserve Bank of India: evolution, organisation and functions (Banking Law)
- The Deposit Insurance and Credit Guarantee Corporation Act, 1961 (Banking Law)