More MCQs on Indian Trusts Act, 1882
- Under Section 60 of the Indian Trusts Act, when does a trustee’s liability for breach of trust arise?
a) Only if the breach is intentional
b) Only if the breach results in loss to the trust property
c) Only if the trustee receives a personal benefit from the breach
d) When there is an unauthorized act that deviates from the trust’s terms
- Which of the following is NOT a fiduciary duty of a trustee under the Indian Trusts Act, 1882?
a) To act in the best interests of the beneficiaries
b) To avoid any conflicts of interest
c) To maximize personal gain from the trust property
d) To disclose all relevant information to the beneficiaries
- What is the status of a trust if the trust property is not properly defined in the trust deed?
a) The trust is void
b) The trust is valid, and the court can decide the property later
c) The trust is void, but the settlor can rectify it
d) The trust is valid, but no specific property is under the trust
- Can a trust for the benefit of a minor child be created under the Indian Trusts Act, 1882?
a) Yes, but only with the consent of the minor
b) No, minors cannot be beneficiaries of a trust
c) Yes, a trust can be created for the benefit of a minor, with a guardian managing the trust
d) Yes, but the trust must be established by a legal guardian
- Which of the following is a valid reason for the court to remove a trustee from their position?
a) The trustee disagrees with the beneficiaries on minor matters
b) The trustee is convicted of a criminal offense
c) The trustee is unavailable for a short period
d) The trustee wants to delegate their duties to another person
- What is the maximum time a private trust can last under Indian law?
a) 50 years
b) 75 years
c) 100 years
d) There is no time limit
- Under the Indian Trusts Act, who has the right to challenge the validity of a trust?
a) Any person, including the trustee
b) Only the settlor
c) The beneficiaries of the trust
d) Any person who feels aggrieved by the trust
- What happens when a trust has no specified duration and no specified termination event?
a) The trust automatically expires after 10 years
b) The trust continues indefinitely, unless terminated by the court
c) The trust is deemed invalid
d) The trust automatically ends when the settlor passes away
- Which of the following is true regarding a charitable trust under the Indian Trusts Act?
a) Charitable trusts must have specific beneficiaries
b) Charitable trusts cannot be challenged in court
c) Charitable trusts must be for public benefit, not private gain
d) Charitable trusts can only be created by individuals, not organizations
- What is the primary duty of a trustee under the Indian Trusts Act, 1882?
a) To maximize personal benefits
b) To act in the best interest of the beneficiaries
c) To follow the orders of the settlor without question
d) To invest the trust property in their own business
- What is the implication of a trustee failing to maintain proper records of the trust property?
a) The trustee will be fined
b) The trustee may be held liable for any loss or mismanagement of the trust
c) The trust will be dissolved
d) The beneficiaries will be required to maintain records themselves
- Can a trust be created for the benefit of unborn children under Indian law?
a) Yes, if the unborn child is specifically named in the trust deed
b) No, a trust cannot be created for the benefit of unborn children
c) Yes, but the trust must specify that the child must be born within a year of the trust’s creation
d) Yes, as long as the trust includes a condition for the child’s birth
- Can a trustee delegate the power to manage the trust property?
a) Yes, if the trust deed allows it
b) No, a trustee cannot delegate their powers
c) Yes, if the beneficiaries approve
d) Yes, if the settlor authorizes it