New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under the Indian Trusts Act, 1882, what is the minimum

    number of trustees required to create a valid trust?  
    A One trustee Correct Answer Incorrect Answer
    B Two trustees Correct Answer Incorrect Answer
    C Three trustees Correct Answer Incorrect Answer
    D Five trustees Correct Answer Incorrect Answer
    E No specific minimum Correct Answer Incorrect Answer

    Solution

    The Indian Trusts Act, 1882, does not prescribe a minimum number of trustees for the creation of a trust. According to Section 10, a single trustee is sufficient to manage the trust property unless the trust deed specifies otherwise.   Section 10 reads as:   Who may be trustee—Every person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract.    No one bound to accept trust—No one is bound to accept a trust.    Acceptance of trust—A trust is accepted by any words or acts of the trustee indicating with reasonable certainty such acceptance.    Disclaimer of trust—Instead of accepting a trust, the intended trustee may, within a reasonable period, disclaim it, and such disclaimer shall prevent the trust-property from vesting in him. A disclaimer by one of two or more co-trustees vests the trust-property in the other or others, and makes him or them sole trustee or trustees from the date of the creation of the trust.  

    Practice Next

    Relevant for Exams: