Dissolution of trust

[CA AMIT DOSHI]

A Private Discretionary Trust was formed with a time horizon of 10 years and accordingly deed was executed. Now in next month, 10 yrs shall get completed . Th question is whether such kind of trust is compulsorily reqd to be dissolved or period could be extended though no such cluase of extension exists in the deed. Pls suggest legal support

[Rama Krishana]

This is a question which can be answered only after detailed scrutiny of the trust deed only. The question may be determined first like, but restricted to, whether it is irrevocable, whether power of amend is there or not, whether alongwith time limit, any performace clause is there or not and so on. Further, after expiry of the trust deed, who is be beneficial. In my preliminary view, the beneficial person only has the power to make a new trust deed or extend the time of the deed.

AI Summary

Trust duration uncertainty: beneficiary authority may allow extension or reconstitution of a private discretionary trust after term expires. Whether a private discretionary trust with a specified ten year term must be dissolved or can be extended depends on whether the deed is irrevocable, whether it contains a power to amend or extend the term, and who holds beneficial entitlement after expiry; absent an express extension clause, beneficiaries may be positioned to create a new trust or effect continuation.