11. TRUST
A trust is a legal entity that acts as agent, fiduciary, or trustee on behalf of a person or business for the purpose of administration, management, and transfer of assets to a beneficial party or beneficiary.
TYPES OF TRUST :
1. SIMPLE TRUST :
A Simple Trust Gives To The Beneficiary a right to the possession, control and disposal of property and has a right to call upon the trustee to execute a conveyance of the legal estate.
2. SPECIAL TRUST :
In this Trustees are charged with the performance of active and substantive duties with respect to control, management and disposition of the trust property for he benefit of the beneficiary.
3. PRIVATE TRUST :
This trust is to confer the benefit either on one person or on certain definite persons who may exist or not be in existence at the time of creation of the trust. In this if purpose or the object fails, the trust also fails & property reverts back.
4. PULIC or CHARITABE TRUST :
This is for the benefit of the public at large. In this if purpose or object fails, nevertheless such community or class of person exists & therefore benefit of similar purposes are conferred on the public at large & this trust does not fails. A trust may be partial Private & partial Public or at first stance private up to certain time & thereafter, it may be converted into public.
5. EXPRESS TRUST :
It is declared trust. It is created by positive and direct acts of the parties irrespective of whether there is any trust deed or will or any instrument in writing. This trust may be Executed or Executory trust.
5.1 EXECUTED TRUST :
The interest of the beneficiary has been defined, the property has been transferred and there does not remain anything more to be done in order to make the trust operative.
5.2 EXECUTORY TRUST :
When something remains to be done in order to complete it.
6. CONSTRUCTIVE TRUST :
It is arise by operation of law such trust is not created but is imposed by court of equity.
7. PERFECT TRUST :
The trust with perfect obligation and enforceable by the beneficiary. The charitable trust is the perfect trust.
8. IMPERFECT TRUST :
The trust with is not enforceable by or on behalf of beneficiary is Imperfect trust .
9. SECRET TRUST :
This trust is suppressed from the public at large. This trust is where as property is given to a person either absolutely or upon indefinite trust.
10. PROTECTIVE TRUST:
It is usually signifies trust which combined the advantage of determinable interest with those of discretionary trusts.
In trust there are three parties – Author of the Trust, Trustee and Beneficiary.
In trust there is fiduciary relationship between trustee and beneficiary.
In trust a trustee is entrusted with ownership as well as possession of the property.
The Trustee becomes full legal owner of the property.
The subject matter of trust is movable as well as immovable property.
In trust, a trustee uses the trust property for the benefits of beneficiary.
There is no transfer of interest in favour of the trustee in respect of the trust property.
In trust on the fulfillment of obligation or the object of the trust, the property is vested in the beneficiary who is the real owner of the trust property.
The Trust is governed by Indian Trust Act, 1882 & The Bombay Public Trust Act, 1950.
Trust creates right in rem i.e. against the whole world.
Trust is enforceable even though there is no consideration.
The nature of obligation is equitable.
In case of trust beneficiary through not party to the contact, may enforce the contract. Trustee being a legal owner, is personally liable for all contracts entered into by him in reference t the trust.
Trust comes to an end on fulfillment of the purpose or object of the trust.
In trust there are three parties – Author of the Trust, Trustee and Beneficiary.
In trust there is fiduciary relationship between trustee and beneficiary.
In trust a trustee is entrusted with ownership as well as possession of the property.
The Trustee becomes full legal owner of the property.
The subject matter of trust is movable as well as immovable property.
In trust, a trustee uses the trust property for the benefits of beneficiary.
There is no transfer of interest in favour of the trustee in respect of the trust property.
In trust on the fulfillment of obligation or the object of the trust, the property is vested in the beneficiary who is the real owner of the trust property.
The Trust is governed by Indian Trust Act, 1882 & The Bombay Public Trust Act, 1950.
Trust creates right in rem i.e. against the whole world.
Trust is enforceable even though there is no consideration.
The nature of obligation is equitable.
In case of trust beneficiary through not party to the contact, may enforce the contract. Trustee being a legal owner, is personally liable for all contracts entered into by him in reference t the trust.
Trust comes to an end on fulfillment of the purpose or object of the trust.
