Trust

Dear Client,
The Indian Trusts Act, 1882, states that a trust must be created for a lawful purpose. The purpose is considered unlawful if it is "immoral or opposed to public policy". An improvident trust that creates destitution could be deemed contrary to public policy, especially if it was a result of the settlor's vulnerability or dependence. Even a trust can be declared invalid if it is a "sham," where the settlor and trustee had a common intention to give a false impression of the rights and obligations created by the deed. While terms and conditions of a trust deed that makes a settlor destitute is not automatically invalid, it is highly prone to legal challenges. A court may determine a trust is legally unenforceable if the settlor can prove that the deed's terms were the result of undue influence, a significant mistake, a lack of mental capacity, or other factors that invalidate the trust from its inception. Hence, it is recommended to consult with experienced Advocate to understand the settlor's right and remedies in the given situation to navigate the issue effectively.