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    Question

    Under Section 6 of the Indian Trusts Act, 1882, Mr. P

    executes a trust deed: "I transfer ₹50 lakhs to Mr. Q as trustee. Q shall invest the funds and apply the income for the education and welfare of such members of my grandchildren as Q in his discretion sees fit, including awarding scholarships to deserving students from the community." No specific beneficiaries are named, and no quantified shares are defined. Which of the following correctly determines the validity of this trust under Section 6?
    A The trust is valid because Section 6 only requires that a trust author indicate intention; the other details can be determined by the trustee later Correct Answer Incorrect Answer
    B The trust is invalid because Section 6 requires that the author indicate with reasonable certainty: (i) intention to create a trust; (ii) purpose of the trust; (iii) the beneficiary; and (iv) the trust property; here, "such members of grandchildren as Q sees fit" fails to identify beneficiaries with reasonable certainty Correct Answer Incorrect Answer
    C The trust is valid as a discretionary trust where the trustee has absolute power to determine beneficiaries; certainty of beneficiaries is not required for discretionary trusts Correct Answer Incorrect Answer
    D The trust is valid but only for the education component; the "welfare" component is void for uncertainty Correct Answer Incorrect Answer
    E The trust is invalid because charitable purposes (scholarships to community members) cannot be mixed with family purposes under Section 6 Correct Answer Incorrect Answer

    Solution

    Explanation: Section 6 of the Indian Trusts Act explicitly provides: "a trust is created when the author of the trust indicates with reasonable certainty by any words or acts (a) an intention on his part to create thereby a trust, (b) the purpose of the trust, (c) the beneficiary, and (d) the trust-property, and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust-property to the trustee." All four elements must be satisfied with reasonable certainty. The question's trust fails on element (c): "such members of my grandchildren as Q sees fit" does NOT identify beneficiaries with reasonable certainty. The phrase "such members...as Q sees fit" grants the trustee complete discretion but does not define the class of beneficiaries with sufficient clarity. Courts distinguish between: (i) fixed trusts (beneficiaries and shares specified); (ii) discretionary trusts (beneficiaries specified as a class, trustee discretion on distribution quantum/timing); and (iii) invalid trusts (beneficiaries not ascertainable as a class). Here, if the phrase means "all grandchildren," that is ascertainable. But "such members...as Q sees fit" suggests selection from an undefined pool. Additionally, mixing community scholarships with family welfare creates ambiguity about the beneficiary class. Section 6 illustration (c) provides: "A bequeaths certain property to B, requesting him to distribute it amongst such members of C's family as B should think most deserving. This does not create a trust, for the beneficiaries are not indicated with reasonable certainty." This directly parallels the question's scenario. Thus, option (B) correctly applies Section 6's four certainties requirement.

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