Indian Trust Act 1882 – A Brief Introduction


The Indian Trust Act 1882 was passed on 13 of January 1882 and it was implemented on 1 March 1882. This act was passed by the imperial legislative council of India. This Act is the second Act that was passed in 1882 or we can say that this was the number 2 Act of 1882. Indian Trust Act consist of 9 chapters and 96 sections and here we will discuss some important chapters and sections of this act

Why did we call it Indian Trust Act?

We called it Indian Trust Act 1882 because in 1882 there was no existence of Pakistan and Bangladesh that’s why we can call it the Indian Trust Act 1882. But this act is applicable for Pakistan and Bangladesh also.


The objectives of this act are trust, donor, trustee and beneficiary

What is trust?

Trust is some kind of property that we give to the trustee. There are two types of trust:

1. Personal trust

2. Public trust

What is personal trust?

It is some kind of property which we give to the trustee and we make ourselves beneficiary. For example, we give some money to our trustee and say that go and do some business and whatever is the profit you earn you have to give me or my family this is called personal trust

What is public trust?

It is some kind of property that we give to the trustee and we make beneficiary to the public. For example, we give some amount of money to the trustee and we say him to go and do some things for the profile of the public.

Who is trustee?

A trustee is a person whom we trust and we give him our property for our profit or public profit

Who is donor?

A donor who donates his property to the trustee for his private trust or public trust. For example, we give our money to Mr XYZ we are the donor and Mr XYZ is the trustee

Who is beneficiary?

The beneficiary is the person for whom the donor will give trust and the trustee will be hired in private trust we are the beneficiary and in public trust, the public is the beneficiary for whom the donor donates his property.

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Chapter 2 act 1882

Section 6: Creation of trust

A trust is created When the donor of trust indicates with reasonable certainty by words or by acts

1. An intention of his part to create a trust

2. Porpoise of trust

3. Beneficiary

4. Property of trust

Section 7: who may create a trust (the donor who have to create a trust)

Section 8: subject of trust (we discuss it on section 6 that why trust is created)

Section 9: Who may beneficiary of trust (if we are going to do private trust the we are the beneficiary of trust or we are going to for public trust the public is the beneficiary)


Section 10: who may be trustee (whom we are giving property of trust whom we are going to trust)

Chapter 3

The duties of the trustee

Section: 20: invest the money of trust (trustee is bound to invest the money)

(Subject of any direction contained in the investment of trust)

Liabilities of trustee

1. Liability to breach trustee (sec 23)

According to section 23 if any breach take place in the trust, then it will be counted as the liability of trustee

2.No set of allowed to trustee (sec 24)

According to section 24 if trustee will invite the money of trust and it will take lose then it will be counted as the liability of trustee.

3. Several liabilities of co-trustee (sec 27)

According to section 27 If the co-trustee is doing the breach of trust of doing any bed work for his benefit and trustee is not taking action on it the it will also count as the liability of trustee.

4. Liability of trustee where beneficiary interest is forfeited to the govt (sec 29)

According to section 29 if government will forfeit the interest of beneficiary, then it will be counted as the liability of trustee

5. Indemnity of trustee (Sec 30)

Non-Liabilities of the trustee

1. For the act of predecessors (sec 25)

According to section 25 if the old trustee will be done something the new appointed trustee is not liable for that.

2. For the act of co-trustee (sec 26)

According to section 26 if co trustee will done some bad work or breach of trust and the trustee will take action on it then the trustee is not liable.

3. Trustee paining without notice of transfer of beneficiary (sec 28)

Chapter 5

Rights of beneficiary

1. Right to rent and profit (sec 55)

According to the section 55 if any property was on rent for the personal trust, then beneficiary have right to collect the rent or profit.

2. Right to specific execution (56)

According to the section 56 if beneficiary want to do specific execution, then he has right to do the execution and he also have Right to transfer of possession.

3. Right to inspect and take copies of the instrument of trusts (57)

According to section 57 beneficiary have right to inspection.

4. Right to transfer beneficial interest (58)

According to section 58 beneficiary have right to transfer money his beneficial interest.

5. Right to proper trustee (60)

According to section 60 beneficiary have right to haired the proper trustee if the trustee is not doing is job properly.

Liabilities of beneficiary

Liability of beneficiary joining in breach of trust (68)

According to the section 68 if any breach of trust will take place with the joining of the beneficiary, then it will be counted as the liability of beneficiary.


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