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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
The donor on requisite stamp paper should sign the deed. It must be attested by at least two witnesses; the donee should accept the gift.
Gift of movable property, may or may not be registered. But the delivery of the property and acceptance of it is essential
No. When you give someone a Power of Attorney, you still have the right to control your money and property. However, you are giving your agent the ability to access your money. Your agent is not supposed to take or use your money without your permission, but there is a risk that a dishonest or unscrupulous agent might steal your money. It is therefore important to choose an agent you trust. You must go over the agent's duties before you sign your power of attorney.
A legal document that removes a previous claim or lien on an asset. A deed of release is usually issued once a mortgage or other type of debt, previously secured against the asset, has been paid in full.
Any person above the age of 18 years and mentally sound may execute Will, but a Will caused by fraud or coercion or by importunately will not be valid and can be examined by a competent civil court. Therefore, a Will must be executed voluntarily.
Parents or guardians cannot execute Will on behalf of minors or lunatic children.
A Will must be attested by minimum of two witnesses is necessary.
A Scribe (deed writer / advocate) cannot be called witness because they have signed the Will in column of drafted by. Thus, two independent attesting witnesses other than the scribe are necessary.
A Beneficiary under a Will should not sign as attesting witness. In order to avoid disputes in the implementation of a Will, a description of the property and the name of the beneficiaries should be clearly written so that there is no room for doubt.
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