UP JUDICIARY Law of Trusts Syllabus

UP JUDICIARY Law of Trusts: topic-wise syllabus

1. 1

   Nature, Definition, and Essentials of a Trust (Indian Trusts Act, 1882)

   ~3 marks

   • Definition of Trust (Section 3): Obligation Annexed to Ownership, Confidence in Trustee
   • Essential Elements: Author of Trust (Settlor/Testator), Trustee, Beneficiary, Trust Property, Trust Deed/Intention
   • Distinction from Bailment, Agency, Contract, Aqd (Wakf), Charge, Condition, Personal Obligation
   • Kinds of Trusts: Private vs Public, Express vs Implied (Resulting, Constructive), Executed vs Executory, Revocable vs Irrevocable
   • Trusts Distinguished from: Executed Trust vs Executory, Conditional Trust
   • Trusts in India: Indian Trusts Act 1882 Applies to Private Trusts; Public Trusts Governed by Religious/Charitable Endowments Acts
2. 2

   Creation of Trusts

   ~4 marks

   Formalities and Requirements (Sections 4-10)

   • Capacity of the Author of Trust (Section 7): Competent to Contract, of Sound Mind, Major
   • Trust Property (Section 8): Movable vs Immovable, What Property Can Be Subject of Trust
   • Who May Be Trustee (Section 10): Any Person Capable of Holding Property, Consent Required, Refusal by Trustee, Number of Trustees
   • Creation of Trust (Sections 4-6): For Immovable Property — By Registered Deed, For Movable — By Deed or Will, Declaration + Delivery
   • Trust Deed: Contents, Registration Requirements, Stamp Duty
   • Uncertainty and Incompleteness of Trust, Purpose Trusts, Trusts for Illegal Purposes
3. 3

   Rights, Duties, and Powers of Trustees (Sections 11-36)

   ~5 marks

   • Duties of Trustee (Sections 11-20): Execute Trust with Care (Section 15), Fulfil Intentions, Provide Accounts (Section 19), Not to Delegate (Section 47)
   • Duty of Good Faith (Section 14): Act in Interest of Beneficiary, No Conflict of Interest
   • Duty Not to Purchase Trust Property (Section 52): Trustee Cannot Buy Beneficiary's Interest
   • Investment of Trust Money (Section 20): Authorised Investments, Prudent Man Rule
   • Powers of Trustee: Power to Sell (Section 37), Power to Vary Investments (Section 36), Power to Compound (Section 43)
   • Rights of Trustee: Right to Title Decree, Reimbursement (Section 32), Indemnity, Lien on Trust Property
   • Case Law: Raja Ram v Ram Lal (Trustee's Duty); Subramania Iyer v Ramanathan (Duty of Care)
4. 4

   Rights and Remedies of Beneficiaries (Sections 55-68)

   ~3 marks

   • Right to Enjoy Trust Property (Section 55), Right to Inspect Accounts (Section 57)
   • Right to Compel Performance of Trust (Section 56): Beneficiary May Sue to Enforce Trust
   • Right to Follow Trust Property (Section 63): Tracing, in Hands of Third Party, Bona Fide Purchaser Exception
   • Right to Transfer Beneficial Interest (Section 58): Assignment, Succession
   • Remedy Against Trustee: Suit for Breach of Trust, Removal of Trustee, Accounts
5. 5

   Vacation of Office, Extinction, and Termination of Trusts (Sections 69-78)

   ~2 marks

   • Vacation of Office of Trustee (Section 69): Death, Insolvency, Discharge, By Petition
   • Removal of Trustee (Section 71): By Court on Grounds of Breach, Insolvency, Unfitness
   • Appointment of New Trustee (Section 73-74): Who May Appoint, Procedure, Vesting of Property
   • Extinction of Trusts (Sections 77-78): When Purpose Fulfilled, By Consent, By Operation of Law, Revocation by Author