Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Non-Corporate Entities

Anita wants to create a trust over her shop premises in Jaipur for the benefit of her daughter during her lifetime, by a document made during her life. Which of the following makes the trust of this immoveable property valid under the Indian Trusts Act, 1882?

A registered, signed, written non-testamentary instrument makes it valid. For immoveable property the Act requires writing signed by the author or the trustee and registered, or a will. Oral declarations, unsigned letters or private notes are insufficient, and mere delivery works only for moveable property.

  1. AAn oral declaration followed by delivery of the shop keys to the trustee
  2. BA non-testamentary instrument in writing signed by the author or trustee and registeredCorrect
  3. CAn unsigned letter to the trustee setting out the purpose
  4. DA private note kept by Anita naming her daughter as beneficiary

Explanation

A trust of immoveable property is valid only if declared by a non-testamentary instrument in writing, signed by the author or the trustee, and registered, or by a will. An oral declaration, an unsigned letter or a private note does not satisfy this. Delivery of keys is the transfer route applicable only to moveable property.

Did you get it right without looking?

One question tells you little. A timed set on Non-Corporate Entities shows your real accuracy, how long you take and where you lose marks.

Practise Non-Corporate EntitiesFree diagnostic mock

More Non-Corporate Entities questions