Trust Law

Trust Law

A “trust” is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another, and the owner.

The Firm has experience in working with voluntary organizations both charitable and non-charitable.

The Firm has its expertise in the following areas –

► Trust formation [including preparing, governing instruments, and seeking registration with the Charity Commissioner]

► Advice on all aspects of trustees and beneficiaries’ status. [with particular reference to the Indian Trust Act]

► Advice on current and potential future developments in trust law and its administration

► Property transactions and commercial agreements of trust.

Trust Law

The main objective is that the trust should be created for a lawful purpose. For example, if Mr X had stolen money from a bank and given it to Mr Y with the intention of giving the money to poor children then, in this case the trust itself is void as the very main purpose is unlawful.

 

So how do we actually understand as to whether the purpose is lawful or unlawful? The answer to it lies in Section 4 of the Act. As per Section 4, all purposes are said to be lawful unless it:

  • Is forbidden by law
  • Defeats the provisions of law
  • Is fraudulent
  • Involves injury to another person or his property
  • Immoral or against to public policy

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