The trust is the organization where the owner of the trust transfers the property to the trustee. The main objective of transferring the property to the trustee is to provide the benefits to the third property. The registered trust avail the exemptions. It provides the benefits to the people who are poor. The compliance would be maintained under the provision of Indian trust Act 1882. When a trust is formed, the family wealth is preserved. The usage of the trust allows the individuals to gain the benefits from the assets. The trusts can be very effective in reducing the tax on the capital income.
- The trust has the governance by State Trust Act or Public Trust Act.
- Trust deeds include objective of trust formation and managing the trust.
- The composition of the board changes.
- It is not easy to change the budget of the trust.
- The charity Commissioner has more power.
- It is difficult to terminate the trust.
- The preservation of the trust is done by the settlor.
- Trust deed establishes the trust.
Documents required For Trust Registration
- Proposed Settlors and Trustee
- PAN card
- Aadhaar card
- Passport size photo
- Rental agreement if the place is on rent.
- Electricity bill.
Trust is not a separate legal entity. The Trust is created when the settlor hands the property over to the trustee. It can be used for the sake of the beneficiary. This legal arrangement is codified through Trust deed.
There are two different types of trust. Private trust and Public trust.
It is very difficult to amend the trust deed. Because it is inherent nature and also it is irrevocable. So it is important to provide the amendment clause.
Yes. A government employee can become trustee.
Trusts are usually registered at office of sub-registrar in the area. This is the place where the sale/purchase of the land property are registered.
Any person who is above 18 years of age, mentally sound and who can get into the contract according to Section 11 of Indian Contract Act 1872 is eligible to create the trust. Also this eligibility criteria is mentioned in Section 7 of Indian trust Act 1882.