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    Question

    Under the Indian Trusts Act, 1882, what happens when a

    trustee mingles trust property with their personal property ?  
    A The trust property is forfeited Correct Answer Incorrect Answer
    B The beneficiaries lose their rights to the property Correct Answer Incorrect Answer
    C The mixed property is treated as trust property to the extent of the trust’s claim Correct Answer Incorrect Answer
    D The trustee is automatically removed from their position Correct Answer Incorrect Answer
    E The court decides ownership of the property Correct Answer Incorrect Answer

    Solution

    Section 66 of the Act specifies that when a trustee mingles trust property with their own, the property remains trust property to the extent of the trust's claim. This ensures the beneficiaries' rights are protected.  

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