Indian Trusts Act : Creation of trust Indian Bare Acts :

Indian Trusts Act,1882

Act No : 2

Section : Creation of trust

6. Creation of trust.-Subject to the provisions of section 5, atrust is created when the author of the trust indicates withreasonable certainty by any words or acts (a) an intention on his partto create thereby a trust, (b) the purpose of the trust, (c) thebeneficiary, and (d) the trust-property, and (unless the trust isdeclared by will or the author of the trust is himself to be thetrustee) transfers the trust-property to the trustee. Illustrations (a) A bequeaths certain property to B, "having the fullestconfidence that he will dispose of it for the benefit of" C. Thiscreates a trust so far as regards A and C. (b) A bequeaths certain property to B "hoping he will continue itin the family". This does not create a trust, as the beneficiary isnot indicated with reasonable certainty. (c) A bequeaths certain property to B, requesting him todistribute it among such members of C's family as B should think mostdeserving. This does not create a trust, for the beneficiaries are notindicated with reasonable certainty. (d) A bequeaths certain property to B, desiring him to divide thebulk of it among C's children. This does not create a trust, for thetrust-property is not indicated with sufficient certainty. (e) A bequeaths a shop and stock-in-trade to B, on condition thathe pays A's debts and legacy to C. This is a condition, not a trustfor A's creditors and C.22