MCQs on Indian Trusts Act, 1882

Here are more multiple-choice questions on the Indian Trusts Act, 1882:

156. Under the Indian Trusts Act, 1882, who is responsible for managing the trust property?
     a) The settlor
     b) The trustee
     c) The beneficiaries
     d) The court

157. Under Section 62, what is the effect of a trustee’s failure to keep separate accounts for trust property?
     a) The trustee will be removed
     b) The trust is considered void
     c) The trustee may be liable for any resulting loss to the trust property
     d) The beneficiaries can withdraw the trust funds

158. According to the Indian Trusts Act, 1882, a trust can be created for the benefit of a living person: a) Only with the settlor’s permission
     b) Only if the person is a family member
     c) Only if the person consents to the trust
     d) No such condition is necessary

159. What happens when a trustee is in breach of their fiduciary duty under the Indian Trusts Act, 1882?
     a) They can be sued for damages
     b) The trust automatically becomes void
     c) They lose their position as trustee
     d) The trust property is automatically divided among the beneficiaries

160. Under the Indian Trusts Act, 1882, a charitable trust must be established for: a) Personal gain of the settlor
     b) A public or social purpose
     c) The benefit of a specific individual
     d) None of the above

161. In case of a trustee’s personal financial troubles, what must the trustee do with the trust property under the Indian Trusts Act?
     a) Disclose their financial situation to the beneficiaries
     b) Use the trust property to pay off their debts
     c) Keep the trust property separate from their personal finances
     d) Sell the trust property to resolve personal debts

162. Under the Indian Trusts Act, which of the following can be a valid trustee?
     a) Only an individual
     b) A minor
     c) A legally competent individual or a corporation
     d) A convicted criminal

163. Which of the following is a key principle of a trust under the Indian Trusts Act?
     a) The trustee must always act in the best interests of the settlor
     b) The trust property must be separate from the trustee’s personal property
     c) The beneficiaries must have the right to change the trustee
     d) The trust must be revocable at any time by the trustee

164. What is the effect if a trust deed is ambiguous or unclear on certain points?
     a) The trust will be considered void
     b) The court may interpret the terms of the trust according to the settlor’s intentions
     c) The trust automatically terminates
     d) The trustee is free to manage the property as they wish

165. Under Section 53 of the Indian Trusts Act, 1882, when can a trustee delegate their duties?
     a) Only if the trust deed allows delegation
     b) A trustee cannot delegate their duties under any circumstances
     c) A trustee can delegate to a co-trustee only
     d) A trustee can delegate their duties after the settlor’s death

166. Which of the following is NOT a duty of a trustee under the Indian Trusts Act?
     a) To keep proper accounts of the trust property
     b) To act impartially in managing the trust property
     c) To maximize their own profits from managing the trust property
     d) To follow the instructions provided in the trust deed

167. Can a trust be formed for the benefit of a group of people who are not yet born?
     a) No, trusts can only benefit people who are alive
     b) Yes, if they are named specifically in the deed
     c) Yes, as long as the trust is for public benefit
     d) No, unless they are born within a certain time limit

168. In a private trust, who has the authority to terminate the trust before its stipulated end time?
     a) The settlor, if alive
     b) The beneficiaries, by mutual agreement
     c) The trustee, at their discretion
     d) The court, under certain circumstances