Creation of Trust
CREATION OF TRUST
Register a TRUST DEED
A deed in a legal sense means a legal document executed between parties. Deed is mode to transfer the property from one person to another. A trust deed is one of those; a trust deed indicates a nexus wherein there is the ‘Author/creator/settler’ of the trust deed, a person who is appointed as a trustee, to whom the property is transferred, and the person who is a ‘beneficiary’ who gains the interests.
The foundation on which the trustee is appointed, itself qualifies as TRUST. The main idea behind a person transferring or disposing his certain property or assets itself is to protect and preserve it or either to extend benefits to the beneficiary. The law that governs trusts and trusts deed is Indian Trusts Act, 1882.
It is essential to note that, the author of the deed must be a major and totally sane and sound. Similarly, the trustee also must be a person above the age of 18 years, along with it must be of sound mind and not an insolvent. The trustee may, at his discretion under reasonable realm reject his trusteeship. The object of the trust shall always be legal, shall not be opposed to public policy.
Procedure to make a valid trust deed
Trust deed is also a legal instrument, which is created by the settler or the author of such deed, who has an intention to transfer the property to the trustee to manage it and to take care of it for the beneficial interests of the Beneficiary.
- There should be at least two Trustees for its creation and execution.
- Such draft of trust deed must be printed on a Stamp paper of prescribed value.
- Such deed must bear the signature of the Author along with that of the two Trustees signatures.
- The trust deed must also be signed and attested by Two Witnesses.
- The trust deed in the end has to be registered in the Sub-Registrar office paying appropriate registration charges.