Q1. Can a Irrevocable Charitable Trust be dissolved ? Q2. If so, what is the proceedure ? Q3. How are the assets of the Trust ie., Land, Buildings etc to be distributed ?
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
Irrevocable Trust: It is the one that will not come to an end until the terms of the trust have been fulfilled.
In the case of an irrevocable trust, it cannot be done without the consent of the settlor and the beneficiary. If the settlor is not alive, then the consent of the beneficiary is needed, and it should be done by the intervention of the court.
It is a Charitable Trust, beneficiary is general public, how can you get consent of beneficiary ?? You seem to have replied in a hurry !!
there is no provision under the various Public Trusts Acts (including the Bombay Public Trusts Act, 1950) to legally terminate or dissolve a valid public charitable trust.
I omitted the word 'charitable' inadvertently.
Charitable Trust cannot be dissolved.
private trust may get dissolved or extinguished on certain grounds:
The trust may be revoked if it was obtained by undue influence or any fraudulent activity
If it is a public charitable trust and the property has already been vested to trust, it can never be divested. if the trustees are not interested to carry out the objective of trust, it will be transferred to the state exchequer for maintaining the trust. no one , Not even the trustees have any power to dissolve it. public charitable trust is always irrevocable.
1. In the case of an irrevocable trust, it cannot be done without the consent of the settlor and the beneficiary. ... In the case where the private trust is created through will, then the trust may be revocable or may be modified at any time during the lifetime of the author of the trust.
2. As per section 77 of the Indian Trust Act,1882, a trust may be extinguished or terminated if “its purpose becomes unlawful”. However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts to legally terminate or dissolve a valid public charitable trust. However, the assets and liabilities of the trust can be transferred to another charitable trust having similar objects thereby the former trust can be dissolved. But a revocable trust can be dissolved as per the terms and conditions of the trust deed.
3. See the above answer.
However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts (including the Bombay Public Trusts Act, 1950) to legally terminate or dissolve a valid public charitable trust.
Generally there is no provision to dissolve a trust once it becomes irrevocable.
Dear Cleint,
Unlike a revocable trust, an irrevocable trust doesn't contain a clause that allows the trusty to dissolve the trust at will. However, a trusty might be able to terminate an irrevocable trust by following state laws regarding dissolution.
Beneficiaries are public, their consent can be assume by giving public notice in news paper about intention of dissolution of trust.
IS it non-testamentary instrument or by word of mouth or registered trust. Who is author of trust. Land building will return to actual contributor.
1.2.3. The answer to your question no.1 is no. You can only write to the Registrar to the effect that in future there will be no operation so that he may issue necessary directions to appoint a Liquidator to manage the future affairs.
1. No it can not be dissolved
Dear client
As per section 77 of the Indian Trust Act,1882, a trust may be extinguished or terminated if “its purpose becomes unlawful”. However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts to legally terminate or dissolve a valid public charitable trust. However, the assets and liabilities of the trust can be transferred to another charitable trust having similar objects thereby the former trust can be dissolved. But a revocable trust can be dissolved as per the terms and conditions of the trust deed.
