336 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
5. Transfer of Trust Property
No trust is created until the author of the trust has divested him of the trust property. That means he must have transferred the property to the Trustee.
This does not apply where the author of the trust is himself the trustee. All that is necessary to show is that he has changed the character in which he holds it.
This does not apply when the trust is created by a will. The will operates after his death and the trustees then take possession.
Section II.—A trust may be valid and yet impeachable.
- A valid trust may be impeached on the following grounds by the following persons :— (a) By the settlor or his successors in title on the ground:
(i) of the incapacity of Parties.
(ii) of some mistake made by, or fraud practised on, the settlor at its creation.
(b) By the settlor’s creditors, by reason of its having been made with a fraudulent intention to defeat or delay them or because it infringes the provisions of the Insolvency Act.
(c) By future purchasers of the property from the settlor without notice of the trust, where the trust property is land, and though was intended by the settlor to defeat the claims of future purchasers.
I. Incapacity of Parties to a Trust
§ Capacity of the author of the Trust.
- The author of a trust must be a person who is competent to contract, i.e.,
(i) He must be major and
(ii) He must be of sound mind.
- Although this prevents a minor from making a trust yet the law provides for a minor making a trust, if the conditions prescribed are observed under the Law, a trust may be made by or on behalf of the minor, provided it is done with the permission of the Principal Civil Court of original jurisdiction.