Trust Registration-Patna-Bihar, Trust Registration-Hazipur-Patna-Bihar, Trust Registration-Muzaffarpur-Bihar, Trust Registration-Ranchi-Dhanbad-Jamshedpur-Jharkhand

 

Definition of Trust

Creation of a trust, particularly relating to an immoveable property is also a specie of transfer of property. Trust is defined in section 3 of the Trust Act, 1882 as ” 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. In simple words it is a transfer of property by the owner to another for the benefit of a third person alongwith or without himself or a declaration by the owner, to hold the property not for himself and another.


Requirements of a Trust

 

A trust is not a contract of agency to hold the property, as in that case there would be no transfer of the property. In trust there is a transfer from the owner to the trustee subject to certain terms and conditions. Bailment is also a kind of trust, but in bailment also there is no transfer of any interest in the property, but only a transfer of possession without ownership. Thereof, a trust is essentially a transfer of property by one to the other to be held by the other for the benefit of some person or for carrying out some object. It is no also a sale because a sale cannot be conditional and in sale there is consideration which is absent in a trust. The purpose of a trust must be lawful, that is,

1. It should not be forbidden by law.
2. It should not be of such nature that, if permitted it could defeat the provisions of any law.
3. It should not be fraudulent.
4. It should not involve or imply injury to the person or property of another or
5. It should not be such as would be regarded by a court as immoral or opposed to the public policy.

Where a trust is created for two purposes one of which is lawful and the other is not and the two purposes cannot be separated, the whole trust is void.

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