OF THE CREATION OF TRUSTSCentral

Section 8 of The Indian Trust Act, 1882

Subject of trust.

The subject-matter of a trust must be property transferable to the beneficiary. It must not be a merely beneficial interest under a subsisting trust.

Summary

The subject matter of a trust must be property that can be legally transferred to the beneficiary.
A person cannot use a basic beneficial interest under an already existing trust as the subject matter to create a new trust.
This rule ensures that only direct, transferable property rights can form the foundation of a trust.

Practical examples

1Meera owns a house in Delhi. Since she can legally transfer the ownership of this house, she can make it the subject matter of a trust for her son on 10th August 2026. This is a valid subject matter.

2Rahul is a beneficiary of a trust set up by his grandfather, which pays him a monthly allowance. Since Rahul's interest is merely a beneficial interest under an active trust, he cannot use this right to set up a new trust for his friend, Ajay, under the law.

FAQ

1. what can be the subject matter of a trust under Section 8 of the Indian Trusts Act 1882

Under Section 8 of the Indian Trusts Act, 1882, the subject matter of a trust must be property that is legally transferable to the beneficiary.

2. can a beneficiary use their trust interest to create another trust under Section 8 of the Indian Trusts Act

No, under Section 8 of the Indian Trusts Act, 1882, the subject matter of a trust must not be a merely beneficial interest under a subsisting, which means currently active, trust.

3. what kinds of property are excluded from being trust property under Section 8 of the Indian Trusts Act 1882

Under Section 8 of the Indian Trusts Act, 1882, any property that cannot be legally transferred to the beneficiary, as well as a merely beneficial interest under an already existing trust, is excluded.

Test yourself

1.Under Section 8 of the Indian Trusts Act, 1882, what is the essential requirement for any property to become the subject matter of a trust?

2.Under Section 8 of the Indian Trusts Act, 1882, which of the following is expressly forbidden from being the subject matter of a trust?

3.Under Section 8 of the Indian Trusts Act, 1882, if property cannot be legally transferred to a beneficiary, what is the legal status of a trust attempted to be created with it?

4.Under Section 8 and Section 9 of the Indian Trusts Act, 1882, if a person wants to transfer their beneficial interest in an existing trust to a new beneficiary, how do these sections interact?

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