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CS Professional · CSR and Social Governance · Societies and Trusts

Meera, an adult of sound mind who is competent to contract, declares that she will hold her Pune flat as trustee for the education of her nephew Arjun. Considering who may create a trust under the Indian Trusts Act, 1882, which statement is correct?

Meera may create the trust because the Act permits every person competent to contract to do so. She is an adult of sound mind. Court permission applies only to minors, and Section 6 lets the author act as trustee, so no transfer to another person is needed.

  1. AShe may create the trust because every person competent to contract may create a trustCorrect
  2. BShe may not create it unless a civil court permits her
  3. CShe may create it only if she transfers the flat to a third-party trustee
  4. DShe may create it only if a registered society is the beneficiary

Explanation

Section 7(a) allows every person competent to contract to create a trust. Meera is an adult of sound mind, so she qualifies. Under Section 6, the author may himself or herself be the trustee, so transfer to a third party is not required. Court permission is needed only for a minor.

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