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

Rohan, a Pune resident, wishes to settle a trust over his flat in favour of his niece Meera, with his friend Sameer as trustee. Under the Indian Trusts Act, 1882, which method makes the trust valid?

A trust over immoveable property such as a flat is valid only if declared by a signed, registered, non-testamentary written instrument, signed by the author or the trustee, or by a will. Oral declarations or mere delivery of possession do not create a valid trust.

  1. AAn oral declaration made before two witnesses
  2. BA non-testamentary instrument in writing signed by Rohan or the trustee and registeredCorrect
  3. CA private letter to Sameer that is neither signed nor registered
  4. DHanding over the keys of the flat to Sameer without any document

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 will. An oral declaration, an unsigned letter, or a mere handover of keys does not satisfy this rule, so those options fail.

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