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Trust deed
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Trust deed
A trust deed is a formal legal instrument that gives effect to the desires of the author of the trust, who reposes confidence in a person for executing the trust deed known as a trustee and lastly the person or persons for whom such confidence is accepted may be called the beneficiary. The property that is the subject matter to be minutely described in the Trust deed is the Trust-Property. Trusts are then categorized into two parts majorly for creation of a deed:
A trust deed is a formal legal instrument that gives effect to the desires of the author of the trust, who reposes confidence in a person for executing the trust deed known as a trustee and lastly the person or persons for whom such confidence is accepted may be called the beneficiary. The property that is the subject matter to be minutely described in the Trust deed is the Trust-property. Trusts are then categorized into two parts majorly for creation of a deed:
Private Trust: It is governed by the Indian Trust Act, 1882 and,
Public Trust: These are governed as per various state legislations.
WHY TO GO FOR REGISTRATION OF TRUST DEED?
For a public trust, whether in relation to a movable property or an immovable property, the registration is optional but always desirable. A registered Trust Deed has the following advantages; -
A registered Trust Deed becomes an official document which carries support and force of law.
A registered Trust Deed effectuates transmutation of possession
A conveyance of trust property to the trustee under a registered deed is generally not open to challenge.
However, in case of a charitable or religious trust, in relation to an immovable property, for claiming exemption U/s. 11of the Income Tax Act, it is essential that the instrument of trust is duly registered.
CONTENTS OF A TRUST DEED:
The creation of a Trust or Charitable Trust requires these contents unavoidably:
Name: It is very important to have a trust name, not showing patronage with Government of India.
Place: The deed must mention where the trust is officially situated.
The crux of a trust deed rests on its objects, the reason of creation of trust.
Number of Parties: There may be a settlor and minimum two trustees, a trustee must be a citizen of India.
GENERAL BODY CLAUSE: Term of Office of Trustee, President and Managing Trustees must be indicated very specifically.
Vacancies between the member of trustees and termination of Office of trustees and dissolution of the trust must be made clear.
Details about notice for meetings between board of trustees and minutes of Quorum and details about voting.
The Deed must very explicitly highlight the power, duties, and liabilities of trustees.
The financial management and fund allocation of the Trust Property and Trust money must be clear in the deed.
Lastly, the deed must be signed by competent witnesses, Author(s) and the Trustee(s).
DOCUMENTS REQUIRED FOR DEED OF TRUST:
A draft of the deed must be duly created beforehand, the essential documents required for registration of a trust are, and just have these and your process troubles you less:
The Trust deed printed on a non-judicial stamp of prescribed value, which may vary from state to state.
There must be an existence of Memorandum of Association and Rules & Regulations of the Trust.
Proofs of registered office address of Trust must be annexed to the trust deed.
Affidavit/ NOC from the Land owner with proof of Identity.
Two photographs are necessary along with self-attested copies of Identity Proofs.
HOW CAN ACREOK HELP YOU?
A trust bears an objective of interests of its beneficiaries being the subject matter, AcreOk understands the importance of trust a customer holds, for hassle-free and authentic Trust Registration and Documentation, Click and Trust Us. AcreOk is an can fulfil the objects of your trusts in nature permissible under existing laws of India. Let us contribute to your good thought by providing the best, quicker and easier process. JUST CLICK and TRUST!
Frequently Asked Questions
A trust if formed in the matter of a document written and signed by trustees or a sole trustee. There is no definite form to create a trust. Objectives of the trust should be clear and unambiguous.
A trust can be formed as per Section 4 of Indian Trust Act 1882 for a lawful purpose
The following can form a trust under Sec.7 of the Indian Trusts Act 1882: A person capable of making contract can form a trust; Trust can be formed on behalf of minor with permission of Civil Court.
- An Author or Settlor of the Trust
- The Trustee
- The Beneficiary
- The Trust Property or the Subject Matter of the Trust
- The objects of the Trust
The registration of Trust or Trust Deed Registration is a one and same thing and each state have prescribed a distinct profess for trust registration.
As such, there is no uniform trust registration form to register a trust. The basic documents to register a trust is the trust deed and KYC documents of its author, trustee and witness of the trust deed
Yes, amendment can be made a rectification or supplementary deed.
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