6. Creation of trust.—Subject to the provisions of section 5, a trust is created when the author of the trust indicates with reasonable certainty by any words or acts,
(a) an intention on his part to create thereby a trust, (b) the purpose of the trust, (c) the beneficiary, and (d) the trust, property, and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust property to the trustee. Illustrations
(a) A bequeaths certain property to B, “having the fullest confidence that he will dispose of it for the benefit of C”. This creates a trust so far as regards A and C.
(b) A bequeaths certain property to B, “hoping he will continue it in the family”. This does not create a trust as the beneficiary is not indicated with reasonable certainty.
(c) A bequeaths certain property to B, requesting him to distribute it amongst such members of C’s family as B should think most deserving. This does not create a trust, for the beneficiaries are not indicated with reasonable certainty.
(d) A bequeaths certain property to B, desiring him to divide the bulk of it among C’s children. This does not create a trust, for the trust property is not indicated with sufficient certainty.
(e) A bequeaths a shop and stock-in-trade to B, on condition that he pays A’s debts and a legacy to C. This is a condition, not a trust for A’s creditors and C. comments Where a particular clause of the trust deed specifically stated that “upon death of beneficiaries the trustees or heirs of trustees shall convey or transfer the trust property to the then surviving heirs of author’s husband”, the apex court held that the observations/interpretation by the High Court regarding the expression ‘heirs’ had limited purpose being only of incidental relevance. There was hardly any room for going beyond the said ‘clause’ as it was precise and typical enough for the purpose of such circumstances; Ranjit Kumar Ghosh v. Sirish Chandra Bose; AIR 1994 SC 1254.