Question 1

What is the Indian Trusts Act, 1882?

Accepted Answer

The Indian Trusts Act is a legal statute in India that governs the creation, operation, and dissolution of trusts.

Question 2

What is a trust as defined by the Act?

Accepted Answer

A trust, as per the Act, is the transfer of property by a settlor to a trustee who holds and manages it for the benefit of one or more beneficiaries.

Question 3

Who are the key parties in a trust under this Act?

Accepted Answer

The main parties in a trust are the settlor (the person creating the trust), the trustee (responsible for managing the trust property), and the beneficiaries (those entitled to benefit from the trust).

Question 4

How is a trust created under this Act?

Accepted Answer

A trust is created through the execution of a trust deed, by which the settlor transfers property to the trustee for the benefit of the beneficiaries.

Question 5

What are the duties and powers of trustees under the Act?

Accepted Answer

Trustees are obligated to act in good faith, with prudence, and in the best interests of the beneficiaries. They have the power to manage and invest the trust property.

Question 6

Can the terms of a trust be altered or revoked?

Accepted Answer

Yes, in certain circumstances, the terms of a trust can be altered or revoked, provided that all beneficiaries consent and it does not defeat the trust's purpose.

Indian Trusts Act MCQ’s Series

Practice Test 1

About Indian Trusts Act:

Features of Indian Trusts Act Multiple Choice Questions (MCQ):

FAQs