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 obligation 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
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 of Trusts Act
3.
DEFINITIONS
I. BLACK
LAW DICTIONARY
Trust
is a right of proper, 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 he one and anyone of whom may enforce the obligation.
III.
DR. MATT 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 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 a 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
Kinds
of trust are as under
i. Constructive
Trust
ii. Executed
Trust
(iii)
Private Trust
(iv)
Public Trust or Charitable
(v)
Expressed Trust
(vi)
Secret Trust
(vii)
Executory Trust
(viii)
Implied Trust
5. PARTIES
OF TRUST
i. Trustee
The
person who accepts the confidence is called a trustee.
(ii)
Author
The
person who reposes or declares confidence is called author of the trust.
(iii)
Beneficiary
The
person for whose benefit the confidence is accepted is called the beneficiary.
6. TRUST
PROPERTY
The
subject matter of the trust is called trust property.
7. INSTRUMENT
OF TRUST
The
instrument by which the trust is declared is called the instrument of trust.
8.
WHO MAY CREATE A TRUST
(i)
By every person competent to contract.
(ii)
With, the permission of a principal civil court or original jurisdiction, by or
on behalf of a minor.
9. DECLARATION
OF A TRUST
A
trust regarding immoveable property is not valid unless it is declared by a
non-testamentary instrument in writing signed by the author of the trust, or
the trustee and, registered or by the will of the author or of the trustee.
Similarly a trust regarding moveable property is not valid unless it is
declared as aforesaid or unless the ownership of property is transferred to the
trustee.
10. CREATION
OF TRUST
According
to Sec. 6 a trust is created when the author of the trust indicates with
reasonable certainty by words or acts.
(i)
An intention on his part he creates it.
(ii)
The purpose of a trust.
(iii)
The beneficiary.
(iv)
The trust property
11.
REQUISITES OF A VALID TRUST
Requisites
of a valid trust are as under:
(i) The
intention of the author of the trust.
(ii)
The beneficiaries.
(iii)
Lawful purpose of the trust.
(iv)
Subject matter.
(v)
Transfer of possession of trust property.
12.
PURPOSE OF TRUST
According
to Sec 4, a trust may be mated for lawful purpose. If the purpose is unlawful,
it is void.
13.
RULE OF CERTAINTY
Following
are rule of certainty:
(i)
Certainty of words.
(ii)
Certainty of subject matter.
(iii)
Certainty of object.
14. UNLAWFUL
PURPOSES OF TRUST
Following
purposes of a trust are unlawful. Forbidden by Law
I.
If it is forbidden by law, the purpose will be unlawful.
II.
Fraudulent
If
it is fraudulent.
III.
Against Provision of any Law
It
would defeat the provisions of any law.
IV.
Involves any Injury
If
it involves or implies any injury to the person or property of author.
V.
Immoral
If
it is regarded by the court as immoral.
VI.
Against Public Policy
If
it is regarded by the court as opposed to public policy.
15.
EFFECT OF UNLAWFUL PURPOSE 0R OBJECT
If
purpose of trust is not lawful. It is absolute void.
I. In
case of two Purposes
Where
two purposes are so interconnected that they cannot be separated, the whole
trust shall become void.
16.
CONCLUSION
To
conclude I can say that the trust is defined as that relation between two
persons by virtue of which one of them holds property for benefit of the other,
or as an equitable right, title or interest in property, real or personal,
distinct from the legal ownership thereof. A trust can only be created for a
lawful purpose. If purpose of trust is unlawful, it is void.
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