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

Under his will, Vikram bequeaths a godown to Karan, 'hoping he will continue it in the family'. Under the Indian Trusts Act, 1882, what is the legal position?

No trust is created. A trust needs reasonable certainty of intention, purpose, beneficiary and property. A hope that Karan will continue the godown in the family does not identify the beneficiary with reasonable certainty, so Karan takes the property without a trust obligation.

  1. AA trust is created because Vikram's wish is clear from the will
  2. BNo trust is created because the beneficiary is not indicated with reasonable certaintyCorrect
  3. CA trust is created only if Karan accepts the godown in writing
  4. DNo trust is created because wills cannot declare trusts

Explanation

A trust requires reasonable certainty about intention, purpose, beneficiary and trust-property. The words 'continue it in the family' do not identify a beneficiary with reasonable certainty. Wills can declare trusts, so the last option is wrong.

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