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Which section of the Indian Trusts Act, 1882 governs investment when trust money cannot be applied immediately or at an early date to the purposes of the trust?

Question and options

Which section of the Indian Trusts Act, 1882 governs investment when trust money cannot be applied immediately or at an early date to the purposes of the trust?

  1. Section 18

  2. Section 19

  3. Section 20

  4. Section 21

Answer and explanation

Correct answer: C - Section 20

Section 20 governs investment when trust money cannot promptly be used for the trust. Subject to the trust instrument’s directions, the trustee must make investments expressly authorised by the instrument or invest in securities or classes of securities notified by the Central Government. If a person competent to contract is entitled in possession to the trust income for life or a greater estate, the trustee must obtain that person’s written consent.

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  • Bihar Judicial Services

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