Definitions
Author of Trust
The person who reposes or declares the confidence is called “the author of the trust”Trustee
The person who accepts the confidence is called the “trustee”.Beneficiaries
The person for whose benefit the confidence is accepted is called the “Beneficiaries”Trust property
The subject matter of trust is called “Trust property” or “Trust Money”.Instrument of Trust
The instrument, if any, by which the trust is declared is called the “Instrument of Trust”.
Requisites For Creation Of A Trust
There is a founder/settler/author of trust;
There should be person(s) called trustee/trustees;
There is a property of the trust which the settler gives;
There is a person capable to enforce that obligation called cestuique trust;
There are beneficiaries who will enjoy benefits out of that property.
An intention of the author or founder to create a trust;
The purpose of the trust;
Transfer of the property to the trustees.
Trustees need to allot an amount/ building/ institution to the trust. The beneficiaries are to be identified. A name need to be allotted to the proposed trust. Need to draft a Trust deed and bye law for the Trust. Need to be registered in the concerned sub registrar office paying stamp duty and fees.
Conditions For Creation Of A Trust
The settler has to give up ownership and all beneficial interests in the property,
The property should be clearly described,
The objects or purposes for creation of trust should be clearly indicated,
Formal deed or any other writing not required intention to create a trust may be shown through words. However, it is advisable to have a written trust deed for all practical purposes,
The settler must be a person competent to contract,
The trust property must be properly transferable to the beneficiary. It must not be a merely beneficial interest.
Who May Be Trustee?
Every person capable of holding property may be a trustee but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract. No one is bound to accept the trust. Any number of persons may be appointed as trustees. However, no trust is defeated for want of a trustee. Where there is no trustee in existence, an official trustee may be appointed by the court and the trust can be administered.
All necessary Procedures including the collection and submission of required details with regard to the Society/ Trust Registration will be done by expert hands with exemplary precision
