Indian Trusts Act, 1882
83. Trust incapable of execution or executed without
exhausting trust-property
Where a trust is incapable of being executed, or where the trust
is completely executed without exhausting the trust-property, the trustee, in the
absence of a direction to the contrary, must hold the trust-property, or so
much thereof as is unexhausted, for the benefit of the author of the trust or
his legal representative.
Illustrations
(a) A conveys certain land to B-
"upon trust", and no trust is declared; or
"upon trust to be thereafter declared", and no such
declaration is ever made; or
upon trusts that are too vague to be executed; or
upon trusts that become incapable of taking effect; or
"in trust for C", and C renounces his interest under
the trust. In each of these cases B holds the land for the benefit of A.
(b) A transfers Rs. 10,000 in the four per cents to B, in trust
to pay the interest annually accruing due to C for her life. A dies. Then C
dies. B holds the funds for the benefit of A's legal representative.
(c) A conveys land to B upon trust to sell it and apply one
moiety of the proceeds for certain charitable purposes, and the other for the
maintenance of the worship of an idol. B sells the land, but the charitable
purposes wholly fail, and the maintenance of the worship does not exhaust the
second moiety of the proceeds. B holds the first moiety and the part unapplied
of the second moiety for the benefit of A or his legal representative.
(d) A bequeaths Rs. 10,000 to B, to be laid out in buying land
to be conveyed for purposes with either wholly or partially fail to take
effect. B holds for the benefit of A's legal representative the undisposed of
interest in the money or land if purchased.