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IAI Actuarial Core Principles · Business Management · Trusts and agency

Under the Indian Trusts Act 1882, which person is NOT able to be the author (settlor) of a valid trust?

A minor acting without permission of a principal civil court cannot validly create a trust. The author of a trust must be competent to contract, and a minor may create one only with that court's leave. The other persons listed have capacity.

  1. AA person competent to contract who owns the property
  2. BA company, within the powers in its constitution
  3. CA person with the Government's consent, creating a trust over property the Government may dispose of
  4. DA minor acting without the permission of a principal civil court of original jurisdictionCorrect
  5. A competent adult creating a trust over their own movable property by a signed instrument

Explanation

The Act requires the author to be competent to contract, or, if a minor, to create the trust only with the permission of a principal civil court of original jurisdiction. A minor acting without that permission cannot validly create a trust. The other options describe persons or entities who can create trusts within their capacity.

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