THE LAW OF TRUST 335
(5) Trust for the creation of a perpetuity.
(6) Trust to take effect upon future separation of husband and wife.
Whether the trust is lawful or unlawful is to be determined in the case of immoveable property by the law where the property is situated.
A trust which is unlawful is void.
Where a trust has two purposes of which one is lawful and the other unlawful, the validity of the trust depends upon the severability of the two. If they can be severed, the one with a lawful purpose is valid and the one with an unlawful purpose will be void.
If they cannot be separated the whole will be void.
- Consequences of settlor creating an unlawful trust—
(i) Court will not enforce it in favour of the person intended to be benefitted thereby.
(ii) Court will not help the settler to recover the estate.
Formalities for a valid trust
Sec. 5.
A trust may be a trust of immoveable property or it may be a trust of moveable property. The formalities prescribed by law for the validity of a trust differ according as the property is immoveable property or moveable property.
Formalities in case the property is immoveable.
Such a trust may be made in two ways—
(i) Either by anon-testamentary instrument signed by the author of the trust or by the trustee, or
(ii) By the will of the author of the Trust,
- Formalities in the case of a trust of moveable property. There are three ways by which it could be done.
(1) By a non-testamentary instrument signed by the author of the trust or the trustee.
(2) By a testamentary instrument signed by the author or the trustee.
(3) By transfer of the ownership of property to the trustee.
4. Difference between declaration and creation of Trust.
(Not explained in ms.)