Sections 78-79 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 78 says when a trust may be revoked. A trust created by will may be revoked at the testator's pleasure. A trust created in any other way can be revoked only in three cases: by consent of all beneficiaries who are competent to contract; under a power of revocation expressly reserved in a non-testamentary or oral declaration; or, where the trust is for paying the author's debts and has not been communicated to the creditors, at his pleasure. Section 79 adds that revocation cannot defeat or prejudice what the trustees have duly done. The Act deals with private trusts; public, charitable and religious trusts are governed by other laws (see private vs public trust). If you are drafting a deed and want to decide whether it should be revocable, our agreement drafting team can help.
A trust created by will may be revoked at the pleasure of the testator (s.78). Any other trust can be revoked only (a) by consent of all beneficiaries, if all are competent to contract; (b) in exercise of a power of revocation expressly reserved to the author, where the trust was declared by a non-testamentary instrument or by word of mouth; or (c) at the author's pleasure, where the trust is for paying his debts and has not been communicated to the creditors. No revocation may defeat or prejudice what the trustees have duly done in executing the trust (s.79).
Section 78: the rule and its three exceptions
Section 78 reads: "A trust created by will may be revoked at the pleasure of the testator. A trust otherwise created can be revoked only—"
| Case | The Act's words | Notes |
|---|---|---|
| Trust by will | "at the pleasure of the testator" | A will is open to change during the testator's life |
| (a) | "where all the beneficiaries are competent to contract—by their consent" | All beneficiaries, each competent |
| (b) | "where the trust has been declared by a non-testamentary instrument or by word of mouth—in exercise of a power of revocation expressly reserved to the author of the trust" | The power must be expressly reserved |
| (c) | "where the trust is for the payment of the debts of the author of the trust, and has not been communicated to the creditors—at the pleasure of the author of the trust" | Only before communication to creditors |
The word "only" makes the list of three exhaustive for trusts not created by will. For a trust created by a deed, the practical lesson in (b) is that unless the deed expressly reserves a power of revocation, the author cannot revoke it on his own. The section does not set out the steps or the form of revocation, or whether any registration is needed; the text is silent, and registration and stamp rules sit in other laws.
In (a), "all" the beneficiaries must consent, and each must be competent to contract. A minor beneficiary means the consent route does not work on the text.
Revocation matters also because section 77(d) lists express revocation of a revocable trust as a way a trust is extinguished; see section 77.
Section 79: revocation does not defeat what trustees have done
Section 79 reads: "No trust can be revoked by the author of the trust so as to defeat or prejudice what the trustees may have duly done in execution of the trust."
So revocation works for the future. Whatever trustees have "duly done" under the trust, for example payments made to a beneficiary or a valid sale of property, stands. The word "duly" matters: acts that were not duly done are not protected by this section. The text does not say how a Court would weigh the effect on third parties.
The Act's own illustration
The Act gives one illustration under section 78. In plain words:
Illustration. A conveys property to B in trust to sell it and pay out of the proceeds the claims of A's creditors. A reserves no power of revocation. If no communication has been made to the creditors, A may revoke the trust. But if the creditors are parties to the arrangement, the trust cannot be revoked without their consent.
This shows case (c) at work. It also shows that once the creditors have been brought in, the author's right to revoke at pleasure is gone. No illustration is printed under section 79 in the scanned copy.
A modern example of our own
Rohit Arora creates three arrangements.
- By his will, he leaves a house to his friend Bhavna on trust for his niece. Under section 78, he may change or revoke it in his lifetime as it is a trust by will.
- By a registered deed, he settles investments on trust for his two adult children. The deed contains no power of revocation. He cannot revoke it on his own. He could revoke only if both children, being competent to contract, consent (case (a)).
- By a separate deed, he reserves expressly to himself the power to revoke the trust of a second plot. Case (b) allows him to use that power. If, before he revokes, the trustee has duly sold part of the plot and paid the beneficiary, section 79 protects that sale and payment.
What the instrument of trust can change
Case (b) shows how much the deed matters: the author's power of revocation must be "expressly reserved". A settlor who wants flexibility must write the power into the deed; a settlor who wants the trust to be firm should leave it out and say the trust is irrevocable. The text does not give a form of words. For clauses, see revocation of trust. On tax effects of revocable arrangements, see our income-tax guides, for example tax on transfer of property to a revocable trust.
Practical points
- Settlors: decide at the drafting stage whether the trust will be revocable. If yes, reserve the power expressly, and say who may exercise it and how.
- Beneficiaries: do not give consent to revocation without understanding what you give up and what the trustees have already done.
- Trustees: keep records of what was done before any revocation, because section 79 protects what was duly done.
- If the trust is for paying the author's debts, check whether the creditors have been told, because that decides whether the author may revoke at pleasure.
Need help deciding whether a trust should be revocable?
The answer depends on what the settlor wants to keep control of. Our agreement drafting team can draft a deed with a revocation clause, or an irrevocable one, and explain what each choice means under section 78.
Key takeaways
- Section 78: a trust by will is revocable at the testator's pleasure.
- Any other trust is revocable only by consent of all competent beneficiaries, under a power expressly reserved, or, for a debt trust not communicated to creditors, at the author's pleasure.
- Section 79: revocation cannot defeat or prejudice what trustees have duly done.
- The Act's illustration shows a debt trust that can be revoked until the creditors are brought in.
- The deed decides whether a power of revocation exists.
Read next
- Sections 80-83: obligations in the nature of trust and trust incapable of execution
- Section 77: how a trust is extinguished
- Revocation of trust: when and how
- Irrevocable trust deed: template and key clauses
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.