A trust owns sufficient acres of land and was started for educational purpose ,but due to non availability of permissions the trust wants to dissolve ,in that case what would happen to the acres of land owned by the trust ,the land was acquired by the trustees by paying from the private company ,so what will happen to the lands if trust is dissolved due to non performance.
Asked 5 years ago in Property Law
Religion: Hindu
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On dissolution of trust property would devolve on the beneficiaries
beneficiaries as in trustees or other?
Asked 5 years ago
On dissolution of trust the property would be received by the beneficiaries of the trust
Advocate, Mumbai
93700 Answers
7296 Consultations
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Land will return/vest to the settler who arranged/purchase the land.
To form a trust, the property owner (called the "settlor") transfers his/her legal ownership to persons or institution (called the "trustees") to manage the said property of the said property owner for the benefit of another person/persons (called the "beneficiary/ recipients"). Accordingly, a Trust is created when a settlor transfers assets to a trustee to hold for the benefit of one or more beneficiaries. The Trust is therefore incapable of holding assets, entering contracts or undertaking any other legal formalities in its own name.
Since a trust owns sufficient acres of land and was started for educational purpose, but due to non availability of permissions the trust wants to dissolve, in that case the trust property generally cannot be sold outright by the Trustees or beneficiary. For this reason consequently, the acres of land owned by the trust and acquired by the trustees by paying from the private company and if trust is dissolved due to non performance, the property must be first transferred to the beneficiary and placed in their name. However, if under the terms of the trust, the beneficiary has the right to claim trust assets for personal use, this is a simple issue of transfer.
Hi, even after the trust is dissolved the beneficiary of land will be in the trust .. Dissolving of trust means the governing body no longer exists , however the assets will be in the name of trust
Advocate, Gurgaon
4629 Answers
67 Consultations
4.9 on 5.0
Revocable living trust property generally cannot be sold outright by a beneficiary; the property must be first transferred to the beneficiary and placed in his name. However, if under the terms of the trust, the beneficiary has the right to claim trust assets for personal use, this is a simple issue of transfer.
Assuming there is still property in the trust, the trustee will work with the beneficiary to distribute the remaining property. Some grantors (wisely) include instructions in the trust instrument that say how the assets should be distributed. When there are no instructions, the trustee and the beneficiaries must decide a fair way of splitting up the assets.
beneficiaries as in trustees or other?
The beneficiaries can be grantors or trustees having interest in the properties as beneficiaries.
This is my response to you:
1. The trustees will obtain the land;
2. The commissioner can partition the land;
3. The trust dissolves then, then who acquired the land will get the portions of the lands as per each one's shares;
4. Consult a local lawyer to examine your trust deed and other documents.
Dear Sir,
Normally the trust deed clauses mentions as to what to do its properties on its dissolution. Actually a trust never dissolves but merged with another trust which is actively running. If it does not merge with another trust with similar objectives then the properties will be vested with government.
