Author-Bibanshu Mishra


According to Section 3 of the Indian Trust Act, 1882. Trust is a fiduciary relationship between property and owner for the benefit other party or owner and another party both.

The person who declares the confidence in the trust is known as the author of the trust.

The person who accepts the confidence is called the trustee.

The person for whose benefit the confidence is accepted is called the beneficiary.

The subject matter of the trust is called trust property.

The instrument by which the trust is declared is called Instrument of Trust.

How Trust is created?

According to Section 6 of the Indian Trust Act, 1882. Trust is created when the author or owner of the trust do or intend to do certain things –

·     Intention to create trust

·     Defines the Purpose of the trust

·     Beneficiary

·     Property of the trust

According to Section 7 of the same act, a trust may be created by every person competent to contract that means the age of majority, sane in mind and with free consent. In the case of a minor, it can be made by minor or someone can do on the behalf of a minor with the permission of the civil court of original jurisdiction. According to Section 9 andSection 10, everyone who is capable of holding a property can be Beneficiary and Trustee.

Kinds of trusts

Public Trust- A public trust is a trust made for the benefit of the public. It depends that it may be classified for a specified public.

Private Trust- A private trust is basically made for the benefit of a specified person.

Express Trust- If the trust is created verbally or written or in expressed form and there is a person nominated as a trustee then express trust can be formed.

Implied Trust– The trust that is created by the act of the parties is called Implied Trust.

Secret Trust– The trust of which the existence is not disclosed it is known as Secret Trust.

Duties of trustee

According to Section 11, the trustee is duty-bound to fulfil the purpose of trust, respects and listen to the author of trust.

According to Section 15, care should be shown by the trustee towards the property in the same way a normal person show care towards the property.

According to Section 17, the trustee should be impartial in the case where there more than one beneficiary.

According toSection 19, the trustee should maintain an accurate account of the trust and trustee should provide information to the beneficiary.

Liabilities of trustee

According to Section 23, when the trustee commits the breach of trust then he needs to pay for the loss.

The trustee is not liable to pay in breach of trust in these following cases –

·     Where he has actually received interest.

·     Where thebreach consists of unreasonable delay in paying trust-money to the beneficiary.

·     Where the trustee ought to have received interest but has not done so.

·     Where he may be fairly presumed to have received interest.

Rights of trustee

1.   The trustee has the right to possession of property and documents relating to the property.[1]

2.   The trustee has the right to reimburse himself the expenses.[2]

3.   The trustee can settle the account once his duty is completed.[3]


Trust is a structure that works for the benefit for either a cause or for the benefit of a person. It is a relationship between trust, beneficiary and trustee. Trust can be expressed, implied, private, public and secret. The trustee has duties, liabilities and rights.

[1] Sec 31.
[2] Sec 32.
[3] Sec 35.


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