Trust Registration

A trust is a relationship in which a person or entity is bound by a fiduciary relationship to exercise that legal rights over the trust property for the benefits of any one or more individuals known as beneficiaries. The trust shall be governed by a set of

written terms and conditions known as trust deed. According to Section 3 of Indian trust Act,1882, trust is defined as an obligations annexed to the ownership of the property, arising out of confidence reposed in, accepted by the owner, or declared and accepted by him, for the benefits of another or of another and the owner.

TYPES OF TRUST

The trust has been broadly classified as

• Public trust: The trust which is created for the benefits of public at large or where the beneficiary is incapable of ascertainment is known as public trust. These trusts are essentially governed by charitable and religious trust act,1920, the religious endowments act, 1963, the societies  registration act,1860, etc. But not governed by Indian trust Act, 1882.

• Private trust: The trust created for the benefits of one or more individuals that can be particularly ascertained. These trusts are accustomed to act as per the provision of Indian trust Act, 1882. Report this ad

FORM A TRUST

Any person who is competent to hold a property can form a trust. This may include Company Individuals Association of persons HUF Legal guardian on behalf of the minor with permission of the civil court.

PROCEDURE OF CREATION OF A TRUST DEED Creation of trust deed:

To register a trust, proper deed should be created on a stamp paper of the expected value of the trust. Submit the trust deed along with the photocopy of the deed to the local registrar for registration At the time of registration, the settler and the two witness must be present along with the original identity proof. The registrar retains the photocopy of the trust deed and returns the original registered copy of the trust deed.