Kinds of Trust under Trust Act

1. INTRODUCTION

The rules relating to trusts are contained in the Trusts Act 1882. It came into force on 1st day of March 1882 and extends to the whole of Pakistan. The Trusts Act 1882 deals with private trusts. It does not discuss the rules of Islamic Law relating to waqaf. A trust is purely equitable obligations and is enforceable only in a court in which equity is administered. The most distinctive feature of a trust is that it is not issuing out of the land but as a thing collateral to it. It is not a Jus in for it is not a legal property.

2. RELEVANT PROVISIONS

Sec. 3, 4, 5, 6, 7 Trusts Act

2. DEFINITIONS

I. BLACK LAW DICTIONARY

Trust is a right of property, real or personal, held by one party for the benefit of other. It is a confidence reposed in one person, who is termed trustee, for benefit of another, who is called cestui que trust.

II. DR. UNDERHILL

A trust is an equitable obligation, either expressly undertaken or constructively imposed by the court, where by the obligator is bound to deal with property over which he has control for the benefits of persons of which he may or may not himself be one and anyone of whom may enforce the obligation.

III. DR. MAIT LAND

A trust enforced when a person has rights which he is bound to exercise:

(i) On behalf of another, or

(ii) For accomplishment of some particular purpose

He is said to have those rights in trust "for that other or for that "purpose" and he is called a trustee.

IV. TRUST ACT 1882

According to Sec. 3 a trust is an obligation annexed to the ownership of the property and arising out of confidence reposed in and accepted by the owner and declare and accepted by him, for the benefit of another and the owner.

4. KINDS OF TRUST

I. CONSTRUCTIVE TRUST

Where law raises a trust even when there is no such intention. It is said to be constructive trust. There is neither an express nor implied intention on the part of the transfer or to create a trust. It rises from a consideration of what just and right irrespective of any intention and court of equity calls upon a person in possession of the property to hold if for the benefit of another.

II. EXECUTED TRUST

An executed trust is one in which the limitation of the estate of the trustee and the beneficiaries are perfected and declare by the author. An executory trust is either an agreement or a covenant for the subsequent execution of a trust, instrument or direction and declaration giving instruments or short heads from which the trustee is subsequently to mode a formal settlement.

III. EXECUTORY TRUST

A trust is said to be executory where although a valid trust is created, a further instrument is necessary to carry into effect the general intention expressed in the first instrument.

IV. EXPRESS TRUST

Express trust is that which is clearly and directly created in express words by the author.

V. IMPLIED TRUST

Implied trusts are tho.se which is created by the operation of law. So implied trust is one though' not express is founded on an unexpressed but presumed implied intention of the settler.

VI. VOLUNTARY TRUST

A voluntary trust is that made by a person of his own will without having received and consideration for doing so. A trust created under a will is always a voluntary trust. A voluntary trust can be enforced only when it is a perfect and complete trust. If such trust is incomplete, the settler can draw back from making such trust.

VII. PRECATORY TRUST

When settlers use the words, "hope" "wish" fully "confident" etc and give the property absolutely to a person. Such words or recommendation of the authors were held by the court of equity as a predatory trust.

VIII. ILLUSORY TRUST

When by the form of instrument, some persons are apparently, beneficiaries does not appear to have been to create a trust for their benefit, the beneficiaries cannot in such a case call upon the trustee to carry out the settlement in their favour.

IX. SECRET TRUST

A secret trust is created where property is given to person either absolutely or upon an indefinite trust but there has been an understanding given by him or an understanding between him and the doner, that it shall be applied for the benefit of some other person or object. So the term secret trust does not necessarily mean a trust of a clandestine nature it merely means a trust not disclosed on the face of the will.

X. RESULTING TRUST

A resulting trust is one which is implied in favour of the person creating it or his legal representatives. All resulting trusts are implied but all implied trusts are not resulting trusts.

XL, PUBLIC TRUST

Public endowments are those in which the delegation is for the use or benefit of the public.

XII. PRIVATE TRUST

Private endowments are those in which the dedication is for the use or benefit of certain individuals. Private trust concern only individual and are limited in their duration. It is subject of the rule against perpetuity.

XIII. MIXED TRUST

A Trust established to benefit both private individuals and charities.

XIV. TRUST ESTABLISHED IN CONSIDERATION OF MONEY

If author of the Trust property has' established in consideration of Money such Trust is known as Trust established in consideration of Money.

5. SOME OTHER KINDS

Following are some other kinds of trust.

(i)            Protective and Discretionary trust.

(ii)           Complete and incomplete trust.

(iii)          Trust of perfect and imperfect obligation

CONCLUSION,

To conclude I can say that, trust is an equitable, obligation, either expressly undertaken or constructively imposed by the court. It is enforceable only in a court in which equity is administered. A trust may be classified into different forms.

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