Trust Registration
A trust involves the owner transferring property to a trustee to benefit a third party. Registered trusts enjoy exemptions and aid the underprivileged. They adhere to the Indian Trust Act 1882. Trusts help preserve family wealth and enable individuals to benefit from assets. They're effective in minimizing capital income tax, making them a valuable tool for wealth management and supporting disadvantaged individuals.
Characteristics
- Trusts are governed by State or Public Trust Acts.
- Trust deeds outline objectives and management.
- Board composition may change, but altering the trust's budget is challenging.
- The Charity Commissioner holds significant authority.
- Terminating a trust is complex.
- The settlor preserves the trust, and the trust deed establishes its foundation.
Documents required For Trust Registration
- Intended Settlors and Trustees
- PAN Card
- Aadhaar Card
- Passport-sized Photo
- Rental Agreement (if the location is rented)
- Electricity Bill
FAQ
A Trust isn't its own legal entity. It forms when the settlor transfers property to the trustee, aiming to benefit the beneficiary. This legal setup is formalized through a Trust deed.
There are two different types of trusts. Private trust and Public trust.
Amending the trust deed is highly challenging due to its inherent and irrevocable nature. Therefore, including an amendment clause is crucial.
Yes. A government employee can become a trustee.
Trusts are typically registered at the sub-registrar's office in the region, where transactions involving the sale/purchase of land properties are also registered.
Any individual over 18, mentally sound, and capable of entering a contract as per Section 11 of the Indian Contract Act 1872 can establish a trust. Section 7 of the Indian Trust Act 1882 also outlines this eligibility criterion.