Section 55 of The Indian Trust Act, 1882
The beneficiary has, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust-property.
Summary
- The beneficiary of a trust has a legal right to receive all the rents generated by the trust property.
- The beneficiary also has a right to receive any other profits produced by the trust property.
- This right to rents and profits is always subject to any specific rules or limits set out in the trust deed, which is the official trust document.
- This rule ensures that the actual financial benefits of trust ownership go to the beneficiary rather than being kept by the trustee.
Practical examples
FAQ
1. What rights does a beneficiary have to rental income under Section 55 of the Indian Trusts Act?
Under Section 55 of the Indian Trusts Act, a beneficiary has a clear right to the rents and profits produced by the trust property, unless the trust deed says otherwise.
2. Can the trust deed limit a beneficiary's right to profits under the Indian Trusts Act Section 55?
Yes, Section 55 of the Indian Trusts Act states that the beneficiary's right to rents and profits is subject to the provisions of the instrument of trust, meaning the trust deed can set specific rules or restrictions.
3. Who is entitled to the profits of trust property under the 1882 trust law Section 55?
Under Section 55 of the 1882 trust law, the beneficiary of the trust is the person entitled to receive the rents and profits of the trust property.
Test yourself
Q1.Under Section 55 of the Indian Trusts Act, 1882, what is the default right of a beneficiary regarding the income from trust property?
Q2.Under Section 55 of the Indian Trusts Act, 1882, what document can alter or limit the beneficiary's right to receive the rents and profits of the trust property?
Q3.Under Section 55 of the Indian Trusts Act, 1882, if a trust owns a commercial warehouse that is leased to a logistics company, who has the legal right to the rental payments?
Q4.Under Section 55 of the Indian Trusts Act, 1882, if a trust deed contains no special rules or restrictions regarding income distribution, how must the trustee handle the profits of the trust?