Section 6 of The Indian Trust Act, 1882
Subject to the provisions of section 5, a trust is created when the author of the trust indicates with reasonable certainty by any words or acts (a) an intention on his part to create thereby a trust, (b) the purpose of the trust, (c) the beneficiary, and (d) the trust-property, and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust-property to the trustee. Illustrations
- (a)A bequeaths certain property to B, having the fullest confidence that he will dispose of it for the benefit of C. This creates a trust so far as regards A and C.
- (b)A bequeaths certain property to B, "hoping he will continue it in the family". This does not create a trust, as the beneficiary is not indicated with reasonable certainty.
- (c)A bequeaths certain property to B, requesting him to distribute it amongst such members of C's family as B should think most deserving. This does not create a trust, for the beneficiaries are not indicated with reasonable certainty.
- (d)A bequeaths certain property to B, desiring him to divide the bulk of it among C's children. This does not create a trust, for the trust-property is not indicated with sufficient certainty.
- (e)A bequeaths a shop and stock-in-trade to B, on condition that he pays As debts and a legacy to C. This is a condition, not a trust for As creditors and C.
Summary
- A trust can only be created if it complies with the rules for writing and registration under Section 5.
- The person setting up the trust must clearly show their intent to create a trust using words or actions.
- The purpose of the trust must be stated with reasonable certainty.
- The person who will benefit from the trust, known as the beneficiary, must be clearly pointed out.
- The specific property or money being put into the trust must be clearly identified.
- The trust property must actually be handed over to the trustee, unless the trust is made through a will or the creator is also acting as the trustee.
Practical examples
FAQ
1. how is a private trust created under Section 6 of the Indian Trusts Act 1882
Under Section 6 of the Indian Trusts Act, 1882, a trust is created when the author indicates with reasonable certainty by words or acts their intention to create a trust, the purpose of the trust, the beneficiary, and the trust property. Additionally, unless the trust is created by a will or the author is the trustee, the trust property must be transferred to the trustee.
2. what are the four certainties required to create a trust under the Indian Trusts Act Section 6
The four certainties required under Section 6 of the Indian Trusts Act, 1882 are the certainty of intention, the certainty of purpose, the certainty of the beneficiary, and the certainty of the trust property.
3. does a trust creator have to transfer property to the trustee under Section 6 of the Indian Trusts Act
Yes, under Section 6 of the Indian Trusts Act, 1882, the trust property must be transferred to the trustee to create the trust, unless the trust is declared by a will or the creator of the trust is themselves the trustee.
4. what happens if the beneficiary is not clearly identified under Section 6 of the Indian Trusts Act 1882
Under Section 6 of the Indian Trusts Act, 1882, if the beneficiary is not indicated with reasonable certainty, no trust is created, and any attempt to make one will fail.
Test yourself
Q1.Under Section 6 of the Indian Trusts Act, 1882, which of the following is NOT required to create a trust?
Q2.Under Section 6 of the Indian Trusts Act, 1882, when is a transfer of trust property to the trustee NOT required to create a trust?
Q3.Under Section 6 of the Indian Trusts Act, 1882, what is the effect if an author bequeaths property to a friend "hoping he will continue it in the family"?
Q4.Under Section 6 of the Indian Trusts Act, 1882, what is the legal result if someone leaves a shop to a friend on the condition that the friend pays the creator's debts and a legacy to a third party?