The Indian Trusts Act, 1882 governs private trusts in India. It sets four certainties a valid trust must satisfy under section 6, and under section 5 it requires a trust of immovable property to be registered at the Sub-Registrar of Assurances, where stamp duty runs at 5% of value in Maharashtra and Karnataka. It does not govern public or charitable trusts, which sit under separate state legislation.

The Indian Trusts Act, 1882 sets the rules for creating and running a private family trust. Where a section decides something for a family, it is quoted and explained here.

Where this page sits

This page covers the Act itself: what it does, who it applies to, the four certainties in section 6, the trustee's duties, the beneficiary's rights, and where registration and tax sit within it.

For the practical steps to create and register a family trust, see the main guide to the private family trust and the registration procedure.

Related guides:

• Private family trust in India: the full guide
• Family trust registration in India
• What creating a family trust costs

What does the Indian Trusts Act, 1882 actually do?

The Act defines a trust as an obligation annexed to the ownership of property, arising out of a confidence reposed in and accepted by the owner for the benefit of another.

The definition creates four roles, and you need only those four to create the trust: the settlor, whom the Act calls the author of the trust, creates it and puts the property in; the trustee accepts the responsibility and holds legal title to that property without owning it beneficially; the beneficiary receives the benefit without holding title; and the assets themselves are the trust-property.

From that definition the Act does three things that decide how a family trust behaves: it says when a trust exists at all, which is narrower than most settlors expect; it says when the deed must be registered, which depends on the property rather than on the trust; and it fixes what the trustee owes the beneficiary, in terms a deed cannot quietly remove.

Who does the Act apply to?

The Act applies to private trusts. Its own long title names them, and its savings provision in section 1 excludes public and private religious or charitable endowments. Those are governed by separate legislation, and in Maharashtra by the Maharashtra Public Trusts Act, which puts them under the Charity Commissioner.

A family trust and a charitable trust have different registration routes, different stamp duty articles and different tax regimes.

What makes a trust valid under section 6?

Section 6 requires four certainties:

• an intention on the author's part to create a trust
• the purpose of the trust
• the beneficiary
• the trust-property

If any one of the four is missing, no trust is created. The Act then adds a fifth operative requirement, which is that the author must actually transfer the trust-property to the trustee, and it waives that requirement in only two cases: where the trust is declared by will, and where the author is himself to be the trustee.

The Act's own illustrations to section 6 show what falls short. A bequest to someone "hoping he will continue it in the family" creates no trust, because the beneficiary is not indicated with reasonable certainty. Neither does a bequest asking the recipient to distribute property among "such members of C's family as B should think most deserving". Language of that kind describes a wish rather than a beneficiary.

When does the deed have to be registered?

Section 5 sets different registration rules for movable and for immovable property.

Immovable property. The trust is valid only where it is declared by a non-testamentary instrument in writing, signed by the author of the trust or the trustee, and registered at the Sub-Registrar of Assurances, or by the will of the author or the trustee. For immovable property, registration is a condition of validity rather than a matter of proof.

Registration is the step that attracts stamp duty. Under the Maharashtra Stamp Act, 1958, Schedule I Article 61, a trust declaration that disposes property is stamped as a conveyance under Article 25, at 5% of market value in a Municipal Corporation area. The Karnataka Stamp Act, 1957 reaches the same rate through Article 54 and Article 20(1). Neither schedule charges a will at all.

Movable property. The trust is valid either on the same footing, or where ownership of the property is transferred to the trustee. A deed that covers both movable and immovable assets must be registered, because the immovable property requires it.

The mechanics of registering, the stamp duty by state and what you take to the sub-registrar are set out in the registration guide.

What does a trustee owe the beneficiary?

The Act fixes these duties, and a deed cannot quietly remove them, which is why they are worth reading before you appoint anybody.

A trustee must deal with the trust property as carefully as a person of ordinary prudence would deal with their own. They must not use the position for their own profit. They must keep clear and accurate accounts and give the beneficiary information about the trust on request. They must act impartially where there is more than one beneficiary.

Three structural rules sit alongside those duties and each one catches people out:

• Section 47. A trustee cannot delegate the office. Appointing someone and expecting them to hand the work to a professional does not work unless the deed provides for it.
• Section 48. Where there are several trustees they must act jointly, unless the instrument provides otherwise. If the deed does not allow majority decisions, the trustees must decide everything unanimously.
• Section 50. A trustee has no right to remuneration in the absence of an express provision. If you intend to appoint a professional trustee, or to pay a family member for the work, the deed has to say so.

On the number of trustees, the Act fixes no minimum and no maximum. The only number anywhere in it is section 60 Explanation II, which says that where the administration involves the receipt and custody of money the number "should be two at least". That sits inside a beneficiary's right, it is phrased as a recommendation, and it is not a registration condition. Section 73 confirms there is no ceiling and expressly contemplates a sole trustee.

What rights does a beneficiary have?

A beneficiary has the right to the rents and profits of the trust property, subject to the deed. They may inspect and take copies of the instrument, the accounts and the documents of title. They can compel the trustee to perform the trust, restrain a breach, and trace the property where the trustee has misapplied it. Under section 60 they are entitled to trustees who are fit to execute the trust.

Do not appoint a family member just to be polite, because section 60 allows the beneficiaries to challenge a trustee who cannot manage the assets.

Can a trust under this Act be revoked?

Section 78 determines whether a trust can be revoked, based on how it was created. A trust created by will may be revoked at the pleasure of the testator. A trust created any other way can be revoked only where all the beneficiaries competent to contract consent, or where the instrument itself expressly reserved the power to revoke.

A deed that says nothing about revocation is irrevocable. Because that is the default, the settlor cannot change their mind and revoke the trust later.

How are trusts under this Act taxed?

Trust taxation sits in the Income-tax Act, 2025, not in the Indian Trusts Act. The 2025 Act replaced the Income-tax Act, 1961. The provisions that govern it are sections 303 to 308; sections 160 to 166 of the 1961 Act are no longer in force.

In outline, and the detail is in the main guide:

Section 307(5) applies the tax test to the deed exactly as it stood on the date it was signed, so you cannot amend the document later to get a better rate.

What the Act does not answer

The Act sets the structure a family trust has to fit inside, and that is all it does. It does not tell you whether your family needs one, it does not price one, the stamp duty that funds it is fixed by state law, and the tax it attracts is governed by the Income-tax Act, 2025.

If someone has suggested a trust for your own family, the question worth settling first is whether a registered will does the same job at no stamp duty. We can tell you which one your estate needs on a call.

FAQs

What is the Indian Trusts Act, 1882?

It is the statute governing private trusts in India. It defines a trust as an obligation annexed to the ownership of property, arising out of a confidence reposed in and accepted by the owner for the benefit of another, and it sets the certainties a valid trust must satisfy, the registration requirement, and the trustee's duties.

Does the Indian Trusts Act apply to charitable trusts?

No. Section 1 excludes public and private religious or charitable endowments, which are governed by separate legislation. In Maharashtra those sit under the Maharashtra Public Trusts Act and the Charity Commissioner.

What are the essentials of a valid trust under section 6?

Four certainties: an intention to create a trust, the purpose, the beneficiary, and the trust-property. If any one is missing, no trust is created. Unless the trust is declared by will or the author is himself the trustee, the author must also transfer the property to the trustee.

Is registration of a private trust compulsory under the Act?

It depends on the property. Section 5 makes registration a condition of validity where the trust holds immovable property. For movable property the section gives an alternative: registration, or actual transfer of ownership to the trustee.

How many trustees does the Indian Trusts Act require?

It requires no particular number. The Act fixes no minimum and no maximum. Section 60 Explanation II says the number "should be two at least" where the administration involves receiving and holding money, which is a conditional recommendation inside a beneficiary's right rather than a requirement. Section 73 expressly contemplates a sole trustee.

Can a trustee be paid under the Indian Trusts Act?

Only where the deed provides for it. Section 50 gives a trustee no right to remuneration in the absence of an express provision, so a deed intending to appoint a professional trustee must say so.

Can a trust be revoked under the Indian Trusts Act?

Section 78 allows a trust created by will to be revoked at the testator's pleasure. A trust created any other way can be revoked only with the consent of all beneficiaries competent to contract, or where the instrument expressly reserved the power. A deed silent on revocation is irrevocable.

Which Act taxes a private trust in India?

The Income-tax Act, 2025, not the Indian Trusts Act. Sections 303 to 308 govern trust taxation, and sections 160 to 166 of the 1961 Act are no longer in force.