Business Standard

Why trust laws need a makeover

The present imbroglio is the problem child of tax amendments and the trusts' decision to voluntarily surrender its exemption

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Bombay House

J N Gupta
Among the other issues that trusts face its corpus, tax status and withdrawal are also open to interpretation. 

The Free Dictionary describes the term corpus as "the capital or principal amount, as of an estate or trust”. In the normal course, the corpus of a trust is sacrosanct and cannot be touched unless the settlors have given directions to the contrary. Therefore, if settlors make any contribution in the form of shares and the income arising out of these shares is intended to be used for charitable objectives, the trustees cannot liquidate this investment and the law should not override
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Nov 28 2019 | 2:53 AM IST

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