TRUST – MEANING
A trust is a harmonization where the owner (settler/author) of the Trust transfers the property to another party (trustee) for the benefit of a third party (beneficiary).
Step 1 – Decide Trust Details
First step is to decide the following details concerning Trust:
- Name of the Trust
- Address of the Trust
- Objects of the Trust (charitable or Religious Trust)
- One Settler of the Trust
- Two Trustees of the Trust
- Trust property movable or immovable property (To save on stamp duty, a small amount of cash/check is usually given to be the initial property of the trust).
Step 2 – Prepare Trust Deed
Prepare a Trust Deed on stamp paper of expected value (8% of the value of the trust’s property in Delhi, rate varies from state to state)
Requirements of the Trust Deed under the Indian Trust Act, 1882
The Trust Deed shall comply with the following:
- Trust deed shall be on stamp paper of required value
- A passport size photograph and a self-attested copy of the settler’s identity shall be attached.
- One passport size photograph and a self-attested copy of proof of identity of each of the two trustees shall be attached.
- Execution of Trust Deed shall be witness by two persons
- A passport size photograph and a self-attested copy of the proof of identity of each of the two witnesses shall be attached.
- Settler shall sign on all pages of a Trust Deed
- Proof of the registered office address of the Trust (electricity/water bill or registration certificate)
- No objection letter signed by the landowner
Step 3 – Certified Copy of Trust Deed
After preparation of Trust Deed, submit it to the sub-registrar, sub registrar will check IDs of these persons, after this the deed will go to the counter where data entry takes place, in the end settler and two witness will be photographed. Fee of Rs. 1100 shall be paid out of which Rs. 100 is the registration fee and Rs. 1000 are the charges of keeping a copy of the Trust Deed with a sub–registrar. (Law regarding physical presence of Trustees are different in different states.)
Once documents are submitted, collect a certified copy of the Trust Deed within one week (approx..) from the registrar’s office.
Step 4 – Register Trust Deed with Registrar
After receiving a certified copy of the Trust Deed, submit the same along with properly attested photocopies with the local registrar.
At the time of registration, the Settler and two witnesses must be present in person along with their identity proof in the original.
The registrar retains the photocopy and returns the original registered copy of the trust deed.
Step 5 – Obtain Registration Certificate
After submitting the Trust Deed with the registrar, the registrar retains the photocopy and returns the original registered copy of the Trust Deed.
Then, after completion of all the formalities registration certificate is issued within a approx. seven working days.
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Author Bio
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