Trust Deed : Trusts are registered using a document called TRUST DEED. This document contains all the information about the Trust. Along with these papers you would need to attach a Non-Judicial stamp paper.
There are two types of trusts in India: private trusts and public trusts. While private trusts are governed by the Indian trusts Act, 1882, public trusts are divided into charitable and religious trusts
All the Trustees and witnesses will have to signatures on the Deed. For registering a trust you need minimum two trustees. The maximum number of trustees can be decided and this number must be mentioned in the deed.
A person who creates a trust is called the settlor, the person to whom the property is transferred on document is called a trustee and the person for whose benefit the property is transferred is called the beneficiary are required to mention in deed.
Charitable, Religious and Hospitality & Rehabilitation institutions can be formed by executing a Trust Deed. It is executed between the settlor and the trustees.
A settlor is a person who creates the trust for some charitable or religious or hospitality & rehabilitation purposes.
Parties to Formation
- Settlor – The individual / entity who creates a trust. Also known as Trustor or Grantor.
- Trustee – The owner who is under an obligation to use his ownership for the benefit of another.
- Beneficiary – The owner who enjoys the benefit of the Trust property.
Procedure:- Lay down the objectives of the Trust and manner in which trustees have to work. This document is the deed and By-Laws. Application for registration of trust shall be moved before “Registrar of Trust” along with Trust Deed.
- A complete drafted trust deed
- Proof of Registered office – Rental Agreement
- ID proof (PAN & Aadhar) of Founder of Trust
- Two witnesses
- If all the documents and application is complete, then the registrar will give the registration certificate.
Note : Though there may be slight difference in the registration process/fees/documents required as rules and acts are different in each state while considering trust registration in State.
For more information about trust and you may connect with legal light consulting team