Sections 55-56 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 55 gives the beneficiary a right to the rents and profits of the trust property, subject to the instrument of trust. Section 56 gives him the right to have the settlor's intention specifically executed to the extent of his interest, and, where the beneficiaries are competent to contract and of one mind, a right to call for the trust property itself. The Act deals with private trusts; public, charitable and religious trusts are governed by other laws (see private vs public trust). If you are a settlor choosing how much a beneficiary should be able to claim, our legal consultation team can talk it through.
The beneficiary has, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust property (s.55). He is entitled to have the author's intention specifically executed to the extent of his interest (s.56). A sole beneficiary competent to contract, or several competent beneficiaries all of one mind, may require the trustee to transfer the property to them or their nominee. That last right does not apply during her marriage to property given to a married woman so that she cannot deprive herself of her interest.
Section 55: rents and profits
Section 55 reads: "The beneficiary has, subject to the provisions of the instrument of trust, a right to the rents and profits of the trust-property."
Two points stand out. First, the right is to the "rents and profits", the income of the property, not only to a share of the capital. Second, it is "subject to the provisions of the instrument of trust". So the deed can control timing, amount, accumulation or conditions. If the deed says income is to be added to the fund until the beneficiary reaches a stated age, the deed prevails. If the deed is silent, the section gives the beneficiary the right to the income.
Section 56: specific execution and transfer of possession
Section 56 has three parts.
First clause: specific execution. "The beneficiary is entitled to have the intention of the author of the trust specifically executed to the extent of the beneficiary's interest." The beneficiary can insist that the settlor's plan be carried out as the instrument sets it out, to the extent of his own interest. He does not get more than his share.
Right to transfer of possession. The section next says: "Where there is only one beneficiary and he is competent to contract, or where there are several beneficiaries and they are competent to contract and all of one mind, he or they may require the trustee to transfer the trust-property to him or them, or to such person as he or they may direct."
Married woman. The last paragraph says that where property has been transferred or bequeathed for the benefit of a married woman "so that she shall not have power to deprive herself of her beneficial interest", nothing in the second clause of the section applies to that property during her marriage.
| Situation | Can the beneficiary call for the property? |
|---|---|
| One beneficiary, competent to contract | Yes, under the right to transfer of possession |
| Several beneficiaries, all competent and all of one mind | Yes, jointly |
| Several beneficiaries, one is a minor or they disagree | The section does not give the right; the text is silent beyond the conditions it states |
| Property for a married woman with a restraint on her power to deprive herself of her interest | Not during her marriage |
"Competent to contract" is not defined in these sections. Take advice on who qualifies in a given case, and note the point in who can create a trust on contractual capacity.
The Act's own illustrations
The Act gives three illustrations under section 56. In plain words:
- Illustration (a). Government securities are given to trustees on trust to accumulate the interest until A reaches the age of 24, and then to transfer the whole amount to him. A, on attaining majority, as the person exclusively interested in the trust property, may require the trustees to transfer it to him immediately. The scanned text prints the age as 24; check the official text if the exact age matters.
- Illustration (b). A bequeaths Rs 10,000 to trustees on trust to purchase an annuity for B, who has attained majority and is otherwise competent to contract. B may claim the Rs 10,000.
- Illustration (c). A transfers property to B and directs him to sell or invest it for the benefit of C, who is competent to contract. C may elect to take the property in its original character.
The point of each: where the person entitled is the only person interested and is competent, the trust has little left to do for him, and the Act lets him take the property without waiting for the deed's timetable.
A modern example of our own
Kavita Rao sets up a private trust with a rented shop in Jaipur. The deed names her daughter Anjali, aged 30, as the only beneficiary and tells the trustee to collect the rent and hold the shop until Anjali turns 35.
- Under section 55, Anjali has a right to the rents and profits, but the deed controls this right. If the deed says rent is to be accumulated until she turns 35, the deed prevails.
- Under section 56, as the only beneficiary and competent to contract, Anjali may require the trustee to transfer the shop to her. That is the position in the Act's illustration (a), where the person exclusively interested may call for the property.
- If the deed instead named Anjali and her brother Mohit, a minor, as beneficiaries, the condition of "competent to contract and all of one mind" would not be met for Mohit. The text does not give the transfer right in that case.
What the instrument of trust can change
Section 55 is expressly "subject to the provisions of the instrument of trust", so the deed can shape the beneficiary's right to income. Section 56 contains no such words, and the second clause on transfer is limited only by its own conditions and the married woman paragraph. Whether a deed can, for example, bar a competent sole beneficiary from calling for the property is not answered by the text. A settlor who wants the trust to run for a fixed term should take advice on how to say so.
Practical points
- Settlors: state clearly in the deed whether income is to be paid out, accumulated, or left to the trustee's discretion.
- Beneficiaries: if you are the only beneficiary and competent to contract, check whether the deed is really a trust you may wind up under section 56.
- Trustees: when all competent beneficiaries ask for the property, take advice before refusing. Keep written records of the request and of the transfer.
- For tax on distributions, see our income-tax guides, for example taxation of trust in India.
Need help with beneficiary rights under a trust?
If you are settling a trust, or a beneficiary who wants to understand what you can claim, the deed is the first document to read. Our legal consultation team can read the deed with you and explain how sections 55 and 56 apply to its terms.
Key takeaways
- Section 55: the beneficiary has a right to the rents and profits, subject to the instrument of trust.
- Section 56: the beneficiary may have the author's intention specifically executed to the extent of his interest.
- A sole competent beneficiary, or several competent beneficiaries all of one mind, may require transfer of the property.
- Property given to a married woman with a restraint on alienation is excepted from that transfer right during her marriage.
- The Act's three illustrations show a beneficiary who is exclusively interested calling for the property.
Read next
- Sections 57-58: inspection of trust documents and transfer of beneficial interest
- Sections 53-54: trustee buying the beneficiary's interest and co-trustees lending to one another
- Rights of beneficiary under trust
- Revocation of trust: when and how
Disclaimer: Based on the text of the Indian Trusts Act, 1882 as consulted on 1 October 2026 from a scanned copy; the Act applies to private trusts, and public, charitable and religious trusts are governed by other laws. This article is general information, not legal advice; check the official text and take advice before acting.