A trust of immoveable property can be created by two ways, one by a non-testamentary document and another by a testamentary document such as a will.
A Trust of Movable Property cannot be created orally but it must be by a document duly registered. A trust of a moveable property can be created either by a document or delivering the property to the trustee with necessary oral directions. If the directions are given in writing it would amount to a trust by a non-testamentary document which may or may not be registered.
A Trust may be private and public.
Private Trust - When the purpose of the trust is to benefit an individual or a group of individuals or his or their descendants for any legal person and who is capable of holding property, it is a private trust.
Public Trust- When the purpose of the trust is to the benefit the public or any section of the public, it is public trust.
Before you register your trust you will need to decide the following:
Documents Required for Trust Registration :
Requirement for registration of Trust Deed with the Local Registrar under
the Indian Trusts Act, 1882:
It may be observed that three types of persons are involved in the creation of a trust—
(i) Author/ settlor of the trust i.e. the person who reposes or declares the confidence;
(ii) Trustees i.e., the persons who accept the confidence;
(iii) Beneficiary i.e., the person(s) for whose benefit the confidence is accepted.
A trust is created when a settlor transfers property to a trustee to hold it for the benefit of one or more beneficiaries. A settlor and a trustee are two distinct roles, although one person can serve in both capacities. A settlor creates the trust and can reserve important powers with respect to the trust. The trustee is obligated to manage the trust, in accordance with state law, after its creation and until the termination of the trust.
TRUST DEED AND TRUST CERTIFICATE
A registered Trust Deed has the following advantages;
1. What's a Trust Registration?
Trust is registered and is governed by the Indian Trust Act. Simply put, it is a financial vehicle that transfers property from its owner to a trust for a lawful purpose. Usually we hear the word trust for the purpose of religion, but there is no such restriction. Even sports academies are registered as trusts.
In India, some companies are registered as public trusts. You will often even hear about the rich creating private trusts; this is done because of the tax-efficient nature of the trust (dividend distribution tax or minimum alternative tax do not apply). It's the easiest way to move than to make a will. However, it does involve a lot more effort to register a trust than to write a will.
2. Who are the Parties to the Trust?
3. What's the Procedure For Registration of Trust?
4 Who can set up a trust?
A trust may be established by:
It also depends on the law in force at that particular point of time and on the extent to which the author of the trust may intend to dispose of his property.
5. Do I need a trust deed consultant?
For the purposes of trust registration the trust deed does not require any specific certification from any professional trust registration consultants, however, you may need our services for the proper preparation of the trust deed, for the appointment of the trust registrar and for operational assistance while you are present at the registry office for the registration of the trust deed.
6. WHAT ARE THE COMPLIANCES AFTER REGISTRATION?
7. HOW TO FORM A TRUST
The objectives of the trust should be clear and clear.
8. WHAT is the tenure of TRUSTEE?
Tenure of trustees will be One Year to 5 Years.