The Trust Registration is a registered company under the Act, 2013.
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The first step to register a trust starts with the drafting of a trust deed. The trust deed is to be executed on appropriate non-judicial stamp paper, the rate of stamp duty differs from state to state. The next step is to seek an appointment with the sub-registrar office having jurisdiction based on the registered office of the trust, and the government registration fee is to be paid after that.
On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses. The registration process is then undertaken by the office of the sub-registrar, and the registered deed can be collected after a week time. The next logical step shall be to get the PAN and TAN Number allotted for the trust and open a Bank A/c for the trust.
THE FOLLOWING ARE THE PRE-REQUISITES FOR THE CREATION OF A PRIVATE TRUST
|The existence of the author/settlor of the Trust or someone at whose instance the Trust comes into existence and the settlor to make an unequivocal
declaration which is binding on him.
|There must be a transfer of the ownership by the author of the trust in favour of the trustee, where the beneficiary gains.|
|A Trust property.|
|The objects of the Trust must be precise and clearly specified.|
|The beneficiary of the Trust may be a particular person or persons.|
|Validation of a Private Trust.|
|For valid constitution of a Trust, the author must indicate with reasonable certainty.|
|The intention on his part to create a Trust.|
|The purpose of the Trust.|
|The beneficiaries and the certainty revolving the beneficiary. An alternative beneficiary must be nominated.The Trust property.Transfer of property to the
Pre-Requisition for Formation of Public Trust
|A declaration of Trust which is binding on settlor.|
|Setting apart definite property and the settlor relinquishing himself of the ownership thereof.|
|A statement of the objects for which the property is hereon held.|
|The settlor or the author of the Trust, and the Trustees must be competent to contract.|
|After formation of the Trust, the Trust shall not be revoked, barring a few exemptions where the Trust contract contains any clause.|
|Book-Entry for Trust Formation.|
|Book entries for Trust formation can be of two types, which we’ll explain in brief.|
|Entries made by the Donor in his own Books.|
|The basic requisite to make a declaration of trust valid is that the donor should have absolutely parted with that interest which was owned by him at the
time of the declaration. If there is no setting apart of ascertained property and no disinvestment on the part of the settlor of the ownership thereof, mere
book-entry cannot result in an effective trust.
|Entries made on Debtors Books.|
|If a credit entry is made in the books of the debtor in favor of a trustee displaying an interest in the creation of a trust rather than in the books of a donor,such an entry would amount to a specific appropriation for the trust.