Under Section 8 of the Indian Trusts Act, 1882, Mr. R

Solution

Explanation: Section 8 of the Indian Trusts Act provides: "The subject-matter of a trust must be property transferable to the beneficiary. It must not be merely beneficial interest under a subsisting trust." The statute prohibits creating trusts whose subject matter is a beneficial interest under an existing (subsisting) trust. The rationale: the law seeks to avoid perpetual or excessive fragmentation of beneficial interests, which would complicate administration and create titles difficult to trace. The distinction: (i) creating a trust of property (permissible); (ii) creating a trust of a beneficial interest in another trust (impermissible under Section 8). In Mr. R's case: R does not own the underlying property (the father's trust property); R only owns an equitable interest (right to receive distributions). R's attempt to settle this beneficial interest as a trust violates Section 8 because the subject matter is "merely beneficial interest under a subsisting trust." The original trustee's consent is irrelevant to Section 8's validity requirement. Thus, option (B) correctly applies Section 8's prohibition on trusts of subsisting beneficial interests.