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

Meera is a beneficiary under a private family trust. The trust instrument says nothing contrary about income. Trust property is a rented shop in Pune. Under the Indian Trusts Act, 1882, what right does Meera have in respect of the rent?

Meera has a right to the rents and profits of the trust property, subject to the provisions of the trust instrument. Since the instrument says nothing contrary, the rent from the shop belongs to her as beneficiary under the Indian Trusts Act, 1882.

  1. AA right to the rents and profits of the trust-property, subject to the instrument of trustCorrect
  2. BA right to remove the trustee and collect the rent herself
  3. CA right to sell the shop without the trustee's consent
  4. DNo right to rent, since only the trustee may enjoy trust income

Explanation

Section 55 gives the beneficiary, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust-property. Since the instrument is silent, Meera has that right. She has no power to sell the shop or remove the trustee merely by being a beneficiary.

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