OF THE EXTINCTION OF TRUSTSCentral

Section 77 of The Indian Trust Act, 1882

A trust is extinguished--

(a)when its purpose is completely fulfilled; or
(b)when its purpose becomes unlawful; or
(c)when the fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise; or
(d)when the trust, being revocable, is expressly revoked.

Summary

This section lists the four specific circumstances under which a trust is legally extinguished and comes to an end under the Indian Trusts Act, 1882.
A trust ends when its purpose is completely fulfilled, meaning the goals of the trust have been fully achieved.
A trust is also extinguished if its purpose becomes unlawful.
The trust terminates if fulfilling its purpose becomes impossible, such as when the trust property is completely destroyed.
Finally, if the trust was set up with a power of revocation, it is extinguished when it is expressly revoked by the author.

Practical examples

1Ramesh created a trust in 2015 to fund his daughter's college education until she graduated. The daughter graduated in June 2024, and all fees were paid. Since the trust's purpose is completely fulfilled, the trust is now extinguished under this rule.

2A trust was set up with a single wooden warehouse as its sole property, with the goal of renting it out to support a local charity. In 2025, a massive fire completely destroys the warehouse, leaving no other assets. The trust is extinguished because its fulfillment has become impossible.

3Sunita created a trust for her brother's welfare and expressly reserved the right to cancel it at any time. In 2026, Sunita executes a written deed of revocation. Because the trust was revocable and has been expressly revoked, the trust is extinguished.

FAQ

1. What are the four ways a trust can be extinguished under Section 77 of the Indian Trusts Act, 1882?

Under Section 77 of the Indian Trusts Act, 1882, a trust is extinguished when its purpose is completely fulfilled, when its purpose becomes unlawful, when fulfillment becomes impossible, or when a revocable trust is expressly revoked.

2. What happens if the sole property of a trust is completely destroyed under Section 77 of the Indian Trusts Act, 1882?

Under Section 77 of the Indian Trusts Act, 1882, if the trust property is destroyed so that the fulfillment of the trust's purpose becomes impossible, the trust is legally extinguished.

3. Does a trust end automatically when its purpose is achieved under Section 77 of the Indian Trusts Act, 1882?

Yes, under Section 77 of the Indian Trusts Act, 1882, a trust is automatically extinguished when its purpose is completely fulfilled.

4. Can any trust be extinguished by revocation under Section 77 of the Indian Trusts Act, 1882?

No, under Section 77 of the Indian Trusts Act, 1882, a trust can only be extinguished by revocation if it is a revocable trust and is expressly revoked by the author.

Test yourself

Q1.Under Section 77 of the Indian Trusts Act, 1882, which of the following events will legally extinguish a trust?

Q2.Under Section 77 of the Indian Trusts Act, 1882, what is the legal effect if the entire trust property is destroyed, making the fulfillment of the trust impossible?

Q3.Under Section 77 of the Indian Trusts Act, 1882, under what condition can a trust be extinguished by revocation?

Q4.Under Section 77 of the Indian Trusts Act, 1882, what is the legal status of a trust if a new law is passed making its core purpose illegal?

76PreviousSection 76 Survival of trust.78NextSection 78 Revocation of trust.

←Section 76 Section 78→