Indian Trusts Act,1882
Act No : 2
Section : Trust incapable of execution or executed without exhaustingtrust-property
83. Trust incapable of execution or executed without exhaustingtrust-property.-Where a trust is incapable of being executed, or wherethe trust is completely executed without exhausting the trust-property, the trustee, in the absence of a direction to the contrary,must hold the trust-property, or so much thereof as is unexhausted,for the benefit of the author of the trust or his legalrepresentative. Illustrations (a) A conveys certain land to B-- "upon trust," and no trust is declared; or "upon trust to be thereafter declared," and no such declaration is ever made; or upon trusts that are too vague to be executed; or upon trusts that become incapable of taking effect; or "in trust for C," and C renounces his interest under the trust. In each of these cases B holds the land for the benefit of A. (b) A transfers Rs. 10,000 in the four per cents. to B, in trustto pay the interest annually accruing due to C for her life. A dies.Then C dies. B holds the fund for the benefit of A's legalrepresentative. (c) A conveys land to B upon trust to sell it and apply onemoiety of the proceeds for certain charitable purposes, and the otherfor the maintenance of the worship of an idol. B sells the land, butthe charitable purposes wholly fail, and the maintenance of theworship does not exhaust the second moiety of the proceeds. B holdsthe first moiety and the part unapplied of the second moiety for thebenefit of A or his legal representative. (d) A bequeaths Rs. 10,000 to B, to be laid out in buying land tobe conveyed for purposes which either wholly or partially fail to takeeffect. B holds for the benefit of A's legal representative theundisposed of interest in the money or land if purchased.
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