Section 77 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 77 lists four ways in which a trust is extinguished: its purpose is completely fulfilled, its purpose becomes unlawful, the fulfilment of its purpose becomes impossible by destruction of the trust property or otherwise, or the trust, being revocable, is expressly revoked. It opens Chapter VIII of the Act. The Act deals with private trusts; public, charitable and religious trusts are governed by other laws (see private vs public trust). If you are closing a trust or want to know whether it has already ended, our legal consultation team can look at the deed with you.
A trust is extinguished (a) when its purpose is completely fulfilled; (b) when its purpose becomes unlawful; (c) when the fulfilment of its purpose becomes impossible by destruction of the trust property or otherwise; or (d) when the trust, being revocable, is expressly revoked. Extinction is also the first way in which a trustee is discharged under section 71. What happens to leftover property is not answered by this section; see section 83.
The four grounds
Section 77 reads: "A trust is extinguished—(a) when its purpose is completely fulfilled; or (b) when its purpose becomes unlawful; or (c) when the fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise; or (d) when the trust, being revocable, is expressly revoked."
| Ground | The Act's words | What to note |
|---|---|---|
| (a) | "its purpose is completely fulfilled" | "Completely" means partial fulfilment is not enough |
| (b) | "its purpose becomes unlawful" | The purpose must become unlawful, for example after a change in law; compare section 4 on lawful purpose |
| (c) | "the fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise" | Destruction of the property is one example; "or otherwise" widens it |
| (d) | "the trust, being revocable, is expressly revoked" | Only a revocable trust, and only by express revocation |
The grounds are joined by "or", so any one is enough. The section does not say that a Court order or a registered document is needed to record extinction; the text is silent on that, and registration and stamp questions sit in other laws.
(a) Purpose completely fulfilled. A trust set up to pay a nephew's fees until he completes a degree is extinguished once that is done. The word "completely" signals that a trust with several purposes continues until all are fulfilled.
(b) Purpose becomes unlawful. Section 4 says a trust's purpose must be lawful, and section 77(b) deals with a purpose that becomes unlawful later. The section does not describe how a trust with several purposes is treated if only one becomes unlawful; the text is silent.
(c) Fulfilment becomes impossible. The Act names "destruction of the trust-property" as one cause and adds "or otherwise". The section does not list the other causes.
(d) Express revocation of a revocable trust. The word "expressly" means revocation must be stated, and "revocable" means the trust must be capable of revocation. Section 78 sets out how a trust may be revoked, and section 79 stops revocation from defeating what trustees have duly done; see sections 78-79.
How the four grounds differ
The four grounds fall into two groups. Grounds (a) to (c) describe events: the purpose has been achieved, has become illegal, or can no longer be achieved. No person has to decide anything; the trust comes to an end because of what has happened. Ground (d) is an act of a person, the author, who expressly revokes a trust that he was entitled to revoke. That is why (d) depends on section 78: unless the trust is revocable under that section, there is nothing to revoke.
For a trustee, the practical difference is this. When an event ground applies, the trustee should stop acting on the trust's purpose, take stock of the property and accounts, and take advice on distribution. When revocation is the ground, he should ask to see the written revocation and check that the power existed. In either case the Act's text does not say that the trustee himself decides whether the ground has arisen, and the beneficiaries are entitled to ask for the accounts. A wrong view on either side can lead to a dispute, which is why a written record of the reasons is wise.
The section also says nothing about a trust whose purpose is partly fulfilled or partly impossible. The word "completely" in (a) suggests that the trust does not end until all of its purpose is met, but the text does not deal with the other grounds in the same way, so a mixed case needs advice on the deed.
What happens afterwards
Section 77 says only when a trust is extinguished. It does not say who gets any property left over. Section 83, in Chapter IX, deals with a trust that is incapable of being executed or has been completely executed without exhausting the trust property: in the absence of a direction to the contrary, the trustee must hold the unexhausted property for the author of the trust or his legal representative. See our article on sections 80-83.
Extinction also ties into section 71(a), which lists "the extinction of the trust" as the first way a trustee is discharged. See sections 70-71.
The Act's illustrations
In the scanned copy consulted, no illustrations are printed under section 77, so none are restated here.
A modern example of our own
Sandeep Gill creates a private trust for his son Aman, with a house in Ludhiana to be held until Aman completes his chartered accountancy course and then handed over.
- When Aman qualifies and the house is transferred to him, the trust's purpose is completely fulfilled and the trust is extinguished under (a).
- Suppose instead that the house is destroyed in a flood and nothing replaces it. If the trust has no other property, the fulfilment of its purpose may have become impossible under (c).
- If Sandeep reserved a power of revocation in the deed and expressly revokes the trust in writing, ground (d) applies, though whether and how he may revoke is governed by section 78.
What the instrument of trust can change
Section 77 does not mention the instrument of trust, apart from the word "revocable" in (d), which depends on whether the deed makes the trust revocable under section 78. A settlor can therefore choose at the drafting stage whether to reserve a power of revocation, and can define the purpose clearly so that it is easy to see when it has been fulfilled.
Practical points
- Settlors: write the purpose so that fulfilment can be recognised, and say what happens to surplus property.
- Trustees: when you think a trust has ended, prepare a final account and a record of what was done with the property, and take advice before distributing.
- Beneficiaries: ask for the final accounts.
- Do not treat a trust as ended merely because the trustees have stopped acting. The Act lists specific grounds.
Need help ending or closing a trust?
If you think a trust has served its purpose, or the deed or property has changed so that it cannot be carried out, the deed and the facts decide the answer. Our legal consultation team can read them and help you document the extinction properly.
Key takeaways
- Section 77 lists four grounds of extinction: purpose completely fulfilled, purpose unlawful, fulfilment impossible, express revocation of a revocable trust.
- Any one of the four is enough.
- The section does not say who gets leftover property; see section 83.
- Extinction is one of the ways a trustee is discharged under section 71.
- No illustrations are printed under this section in the scanned text.
Read next
- Sections 78-79: revocation of trust and protection of what trustees have done
- Section 76: survival of trust on death or discharge of a co-trustee
- Extinguishment of trust: how trusts end
- How to close a trust in India
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.