TRUST

The Indian Trusts Act of 1882 governs trusts in India.

• Purpose: Trusts can be created for any lawful purpose. The purpose is considered lawful if the Indian Contract Act, Section 23, declares the object of an agreement to be lawful.
• Trustees:  Anyone who is capable of holding property can be a trustee. However, if the trust involves discretion, the trustee must be competent to contract.
• Trust formation: At least two people are required to form a trust. The parties must not be disqualified under any law in force in India.
• Trust registration: Trusts can be registered based on the type of property.

Some other aspects of the Indian Trusts Act of 1882 include:

• Trustees must be impartial.
• Trustees cannot convert the trust's property and monetary assets into rofitable property outside the trust's purpose.
• Trustees must understand the trust's statutes.
• Trustees can claim expenses and salary from the trust for their work.
• Trustees can sometimes act alone if required.
• Trustees cannot breach the trust or the purpose of the trust.