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

Meera writes in her will that she bequeaths her house in Pune to her nephew Karan, 'hoping he will continue it in the family'. Karan wants to know if a trust has been created. Under the Indian Trusts Act, 1882, what is the position?

No trust is created. The Act requires the author to indicate the beneficiary with reasonable certainty, along with intention, purpose and property. A mere hope that the property will continue in the family does not identify any beneficiary, so the bequest is an outright gift to Karan.

  1. AA trust is created because the property is clearly identified
  2. BA trust is created because Meera expressed a hope in a will
  3. CNo trust is created because the beneficiary is not indicated with reasonable certaintyCorrect
  4. DNo trust is created because a will can never declare a trust

Explanation

A trust arises only when the author indicates with reasonable certainty the intention, purpose, beneficiary and trust-property. Words 'hoping he will continue it in the family' do not identify a beneficiary with certainty. The property is identified, but that alone is not enough, and a will can declare a trust.

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