328 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
(4) The line of cleavage between a completely constituted trust and an incompletely constituted trust is :- in the former the property is vested in the Trustees upon trust; in the latter the property is not so vested.
(5) The line of cleavage between an Executed Trust and an Executory Trust is that in the former the interests of the beneficiaries are defined when in the latter they are not so defined.
(6) That being so an Executory Trust may be a completely constituted Trust.
II. P ARTIES TO A TRUST .
- Apparently there are three parties to the transaction of a trust—
(i) The party who makes the trust.
(ii) The party who accepts the trust.
(iii) The party for whose benefit the trust is made.
The party who makes the trust is called “the author of the trust”. The party who accepts the trust is called the trustee. The party for whose benefit the trust is made by the author and accepted by the trustee is called the beneficiary.
Is it necessary that the three parties should be distinct and separate and that one of three cannot occupy the role of any two of them ? The answer to this question is some of them can play the role of two.
(i) The author of the trust and the beneficiary of the trust must be distinct and separate.
(ii) The trustee and the bebeficiary must be distinct and separate.
(iii) The author of the trust need not be distinct and separate from the Trustee..
- The reasons why some parties can occupy the role of two in one and some cannot are important.
(i) The making of a trust results in the creation of two different estates in the property which is the subject-matter of the trust— the legal and the equitable. A trust lasts as long as these two interests remain separate, (ii) If the legal and equitable estates happen to meet in the same person, the equitable is forever extinguished by being absorbed in the legal. In other words, where the legal and the equitable interests are co-extensive and