OF THE RIGHTS AND LIABILITIES OF THEBENEFICIARCentral

Section 69 of The Indian Trust Act, 1882

Every person to whom a beneficiary transfers his interest has the rights, and is subject to the liabilities, of the beneficiary in respect of such interest at the date of the transfer.

Summary

Section 69 of the Indian Trusts Act, 1882 regulates the legal position of a person who buys or receives a beneficiary's interest.
The person who receives the transferred interest, known as the transferee, gets exactly the same rights the beneficiary had at the moment of the transfer.
The transferee also becomes subject to all the liabilities that the beneficiary had regarding that interest at the time of the transfer.
This section ensures that a beneficiary cannot escape trust liabilities or pass on better rights than they actually owned by transferring their interest to another person.

Practical examples

1Joy is a beneficiary of a trust and is entitled to receive ten thousand rupees. However, Joy owes the trust five thousand rupees because he joined the trustee in a breach of trust on November 1, 2025. On December 1, 2025, Joy transfers his entire trust interest to Kiran. Under Section 69 of the Indian Trusts Act, 1882, Kiran receives the right to get the ten thousand rupees but is also subject to the five thousand rupee liability that Joy owed at the transfer date.

2Meera has a right to the rent of a trust building under a family trust. She has not committed any breach. On March 10, 2026, she transfers her interest to Amit. Under Section 69 of the Indian Trusts Act, 1882, Amit acquires the exact same clean rights to receive the rent that Meera had on that date.

FAQ

1. What are the rights of a transferee under Section 69 of the Indian Trusts Act, 1882?

Under Section 69 of the Indian Trusts Act, 1882, a transferee, meaning the person receiving the transferred interest, gets the exact same rights that the beneficiary held regarding that interest at the date of the transfer.

2. Does a transferee face any liabilities under Section 69 of the Indian Trusts Act, 1882?

Yes, under Section 69 of the Indian Trusts Act, 1882, the transferee is subject to all the liabilities that the beneficiary had in respect of that interest at the date of the transfer.

Test yourself

Q1.Under Section 69 of the Indian Trusts Act, 1882, what is the legal standing of a person who receives a transfer of a beneficiary's interest?

Q2.Under Section 69 of the Indian Trusts Act, 1882, if a beneficiary transfers their interest on June 15, 2025, when are the transferee's rights and liabilities determined?

Q3.Under Section 69 of the Indian Trusts Act, 1882, if a beneficiary's interest is liable to be impounded under Section 68 for a breach of trust, what is the effect of transferring that interest to a person who has full notice of the breach?

Q4.Under Section 69 of the Indian Trusts Act, 1882, can a beneficiary transfer more rights to a transferee than the beneficiary actually possesses?

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