Section 6 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 6 tells you what must be present for a trust to come into existence. The author of the trust must show, with reasonable certainty, four things: an intention to create a trust, the purpose, the beneficiary and the trust-property. Unless the trust is by will or the author is himself to be the trustee, he must also transfer the property to the trustee. For help recording these four things properly in a deed, see our agreement drafting service.
Subject to section 5, a trust is created when the author of the trust indicates with reasonable certainty, by any words or acts, (a) an intention to create 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 is himself to be the trustee, he must transfer the trust-property to the trustee. Uncertainty on any one of the four points can mean no trust arises.
The text
Section 6 reads: "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."
The Act deals with private trusts; public, charitable and religious trusts are governed by other laws, as set out in private trust vs public trust.
Limb by limb
| Element | What it requires | Source wording |
|---|---|---|
| Intention | The author means to create a trust | "an intention on his part to create thereby a trust" |
| Purpose | What the trust is for | "the purpose of the trust" |
| Beneficiary | Who benefits | "the beneficiary" |
| Trust-property | What is held | "the trust-property" |
| Transfer | Property goes to the trustee | Not needed if by will, or if the author is himself the trustee |
Points to notice:
- "By any words or acts". No special form of words is required by section 6 itself. The form requirements of section 5 still apply, which is why section 6 begins "Subject to the provisions of Section 5".
- "Reasonable certainty". The test is reasonable, not perfect, certainty. Illustrations below show where the line fell in the Act's own examples.
- Self-declared trusts. If the author is to be the trustee, the section does not require a transfer to a separate trustee. This is the route for someone who declares "I hold this property in trust for X".
- Trusts by will. The transfer step is also not needed where the trust is declared by will.
Our existing article on who can create a trust, competence and intention covers the intention side from a practical angle, and section 3 of the Act defines the terms used here: see definition and creation of trust, section 3.
The Act's own illustrations
The source prints five illustrations, which we restate in plain words. In the OCR the letter labels (a) to (e) are broken, so we number them in order.
- A leaves property by will to B "having the fullest confidence that he will dispose of it for the benefit of" C. This creates a trust. (The scanned text of the last words, naming who the trust is created for, is unclear; check the official text.)
- A leaves property to B "hoping he will continue it in the family". No trust: the beneficiary is not indicated with reasonable certainty.
- A leaves property to B, asking him to distribute it among such members of C's family as B thinks most deserving. No trust: the beneficiaries are not indicated with reasonable certainty.
- A leaves property to B, wishing him to divide the bulk of it among C's children. No trust: the trust-property is not indicated with sufficient certainty.
- A leaves 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.
The pattern: words like "hoping", "the bulk of" and "such members as B thinks deserving" leave a gap in the beneficiary or the property, and the Act's own examples treat that as fatal. A condition attached to a gift is different from a trust.
A modern example of our own
Rekha Singh signs a deed saying: "I transfer 500 shares of a listed company to my brother Prakash to hold for my daughter Tanya until she turns 25, and to use the dividends for her college fees." Check each limb: intention (to hold on trust), purpose (education and holding until 25), beneficiary (Tanya), trust-property (the 500 shares), and a transfer to the trustee. All four are certain.
Contrast Rekha's friend Dev, who writes: "I leave my savings to Prakash, hoping he will look after the family." As in the Act's second illustration, "the family" is not a beneficiary indicated with reasonable certainty, so no trust arises on those words.
What the instrument of trust can change
Section 6 has no "subject to the instrument of trust" wording. It sets what must be indicated for a trust to exist. A deed cannot dispense with the four elements, but it can supply them clearly, and drafting well is the practical way to avoid the Act's examples of failed trusts.
Practical points
- Settlors: name the beneficiaries by clear description (for example, "my daughter Tanya") and list the property item by item.
- Self-declared trusts: state clearly that you hold the property "as trustee" so the intention is not in doubt.
- Will-makers: avoid hopeful wording; say plainly that the property is to be held on trust.
- Check section 5: form requirements, including registration for immovable property, still apply.
Need help drafting the creation clauses?
The creation clauses are where many family trusts go wrong. Our agreement drafting team can draft a deed that states intention, purpose, beneficiary and trust-property with certainty. Bring a list of the assets and the people you wish to benefit.
Key takeaways
- Four things must be shown with reasonable certainty: intention, purpose, beneficiary, trust-property (s.6).
- The author must also transfer the property to the trustee, unless the trust is by will or the author is himself the trustee.
- Section 6 is subject to section 5 on form.
- The Act's illustrations show "hoping", "the bulk of" and "such members as he thinks deserving" failing the test.
- A condition attached to a gift is not by itself a trust.
Read next
- Section 5: trust of immovable property must be in writing and registered
- Section 7: who may create a trust
- Section 8: subject matter of a trust
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.