Indian Trusts Act,1882

Act No : 2

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Section : Lawful purpose

4. Lawful purpose.-A trust may be created for any lawful purpose.-The purpose of a trust is lawful unless it is (a) forbidden by law, or(b) is of such a nature that, if permitted, it would defeat theprovisions of any law, or (c) is fraudulent, or (d) involves orimplies injury to the person or property of another, or (e) the Courtregards it as immoral or opposed to public policy. Every trust of which the purpose is unlawful is void. And where atrust is created for two purposes, of which one is lawful and theother unlawful, and the two purposes cannot be separated, the wholetrust is void. Explanation.--In this section the expression "law" includes,where the trust-property is immoveable and situate in a foreigncountry, the law of such country.21 Illustrations (a) A conveys property to B in trust to apply the profits to thenurture of female foundlings to be trained up as prostitutes. Thetrust is void. (b) A bequeaths property to B in trust to employ it in carryingon a smuggling business, and out of the profits thereof to support A'schildren. The trust is void. (c) A, while in insolvent circumstances, transfers property to Bin trust for A during his life, and after his death for B. A isdeclared an insolvent. The trust for A is invalid as against hiscreditors.

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