OF THE CREATION OF TRUSTSCentral

Section 9 of The Indian Trust Act, 1882

Every person capable of holding property may be a beneficiary. Disclaimer by beneficiary.--A proposed beneficiary may renounce his interest under the trust by disclaimer addressed to the trustee, or by setting up, with notice of the trust, a claim inconsistent therewith.

Summary

Any person who has the legal capacity to hold property can be a beneficiary of a trust.
A beneficiary is not forced to accept the trust benefit and has the right to refuse or renounce it.
To refuse the trust, the beneficiary can send a formal disclaimer, which is a statement of rejection, directly to the trustee.
Alternatively, a beneficiary can refuse the trust by actively making a claim that conflicts with the trust, after they are aware the trust exists.

Practical examples

1Vikram sets up a trust on 1st April 2026, naming his minor granddaughter, Neha, as the beneficiary of a bank fund. Since even a minor is legally capable of holding property, Neha is a valid beneficiary.

2George is named as the beneficiary of a trust containing a piece of land on 14th June 2026. George does not want to have anything to do with the trust or the responsibilities. He writes a letter to the trustee, saying "I hereby disclaim all my beneficial interest under this trust." This act successfully cancels his role as a beneficiary under the law.

FAQ

1. who is eligible to be a trust beneficiary under Section 9 of the Indian Trusts Act 1882

Under Section 9 of the Indian Trusts Act, 1882, every person who is capable of holding property is eligible to be a beneficiary of a trust.

2. how can a beneficiary reject a trust under Section 9 of the Indian Trusts Act

Under Section 9 of the Indian Trusts Act, 1882, a proposed beneficiary can reject their interest by sending a written disclaimer to the trustee, or by making a claim that conflicts with the trust after they find out about it.

3. what is a disclaimer under Section 9 of the Indian Trusts Act 1882

Under Section 9 of the Indian Trusts Act, 1882, a disclaimer is a formal renunciation or refusal by a proposed beneficiary to accept any interest or benefit under the trust.

4. can a person who cannot contract still be a beneficiary under Section 9 of the Indian Trusts Act

Yes, under Section 9 of the Indian Trusts Act, 1882, the only requirement is being capable of holding property, so minors or others who cannot contract can still be beneficiaries.

Test yourself

Q1.Under Section 9 of the Indian Trusts Act, 1882, what is the sole legal test for whether a person can be a beneficiary?

Q2.Under Section 9 of the Indian Trusts Act, 1882, which of the following is a valid way for a beneficiary to renounce their interest?

Q3.Under Section 9 of the Indian Trusts Act, 1882, what must occur for an inconsistent claim to act as a valid disclaimer?

Q4.Under Section 9 of the Indian Trusts Act, 1882, if a beneficiary successfully disclaims their interest, what happens to the trust benefit?

8PreviousSection 8 Subject of trust.10NextSection 10 Who may be trustee.

←Section 8 Section 10→