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Anita is named by a settlor as trustee of a trust of shares for Rahul. Anita does nothing and later writes within a reasonable time that she disclaims the trust. Another co-trustee, Vikram, was also named. What is the effect under Section 10 of the Indian Trusts Act, 1882?

Vikram becomes sole trustee from the date the trust was created. No one is bound to accept a trust, and a disclaimer made within a reasonable period stops the property vesting in Anita. A co-trustee's disclaimer vests it in the remaining trustee from the date of creation.

  1. AAnita is bound to continue because no one may refuse a trust once named
  2. BThe trust fails because both trustees must accept
  3. CVikram becomes sole trustee from the date of creation of the trustCorrect
  4. DVikram becomes trustee only from the date of Anita's disclaimer

Explanation

Under Section 10 no one is bound to accept a trust and the intended trustee may disclaim within a reasonable period, which prevents the property vesting in him. A disclaimer by one co-trustee vests the property in the others, making them sole trustees from the date of creation of the trust. So the date-of-disclaimer option is wrong.

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