Trust Formation

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Trust Formation

₹ 5000.00 7000.00

The main purpose of a trust is to transfer assets from one person to another. Trusts can hold different kinds of assets. Investment accounts, houses and cars are examples. One advantage of a trust is that it usually avoids having your assets (and your heirs) go through probate when you die.

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There are various types of Trust in India, such as;

  • Revocable;
  • Testamentary
  • Irrevocable
  • Charitable
  • Asset protection
  • Spendthrift
  • Special needs

Fundamental Documentation Required for Trust Registration

  • Proof related to Identity for Trustor & Trustee such as Aadhaar Card, Voter ID, Passport, DL
  • Address Proof related to Registered Office such as Copy of Certificate of Property/Utility Bills
  • No objection certification from the Landlord if the property is rented .
  • Trust deed's objective
  • Detail about the Trustee and settlor such as Self-attested copy Id & Address Proof and occupation
  • Trust Deed on Proper Stamp Value
  • Trustee and settlor Photos
  • Trustee and settlor
  • PAN details
  • Trust deed must reflect the following information:
  • Number of trustees
  • Trust registered address
  • Proposed name of trust
  • Proposed Rules that will govern the trust
  • Presence of settlor as well as two witnesses at the time of registration of Trust

What are the Benefits of Trust Registration?

 1. Accessibility to Tax Exemptions

 2. Provide Benefits to Financially Aggrieved Individual 

 3. Encounter Minimal Legal Hindrances

 4. Ensures Legal Coverage for the Family Wealth

 5. Avert Probate Court

 6. Immigration/Emigration of Family

What are the Types of Trusts?

There are three types of trusts in India:

  • Public Trust
  • Private Trust
  • Public Cum-Private Trust

While private trusts function as per the provisions of the Indian trusts Act, 1882, public trusts are categorized into religious & charitable trusts. The Religious Endowments Act, 1863, Charitable and Religious Trust Act, 1920, the Bombay Public Trust Act, 1950 are some of the prominent statutes for the enforcement of public trusts in India.

Private Trust

Private Trust refers to a legal arrangement created for the benefit of individuals other than a public or charitable purpose. It is formed for the financial benefit of one or more beneficiaries who are known to the Trustor. Private Trust doesn’t serve a charitable purpose, and its benefits are only accessible to designated beneficiaries. Such trusts are bound to follow the provisions of the Indian Trusts Act, 1882

Public Trust

A Public Trust essentially benefits the public at large. Unlike private trusts, public trusts do not function under the Indian Trusts Act and are formed to serve a charitable or religious purpose. Such Trust follows the general law, which is in effect for the time being. Just like the private Trust, these trusts may be formed inter vivos by will.

Public-Cum-Private Trusts

As the name suggests, the Public-Cum-Private Trusts serve a dual purpose. They are eligible to use their income for the public as well as private purposes. That implies that beneficiaries of such Trust could be either public or private persons or both.