How To Form A Trust

8/14/2015
How To Form A Trust
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trust | By VakilNo1
How To Form A Trust

Page Contents [hide]
Definition of Trust
Requirements of a Trust
Creation of Trust
Deed of Trust
Declaration of Trust
Testamentary Trust
Who can Create a Trust
http://www.vakilno1.com/howto/trust/contentstrust.html
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Trust, Private and Public

Who can be a trustee
Definition of Trust
Creation of a trust, particularly relating to an immoveable property is also a species of transfer of property.
Trust is defined in section 3 of the Trust Act, 1882 as an obligation annexed to the ownership of property
and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for
the benefit of another or of another and the owner. In simple words it is a transfer of property by the owner
to another for the benefit of a third person along with or without himself or a declaration by the owner, to hold
the property not for himself and another.
Requirements of a Trust
A trust is not a contract of agency to hold the property, as in that case there would be no transfer of the
property. In trust there is a transfer from the owner to the trustee subject to certain terms and conditions.
Bailment is also a kind of trust, but in bailment also there is no transfer of any interest in the property, but only
a transfer of possession without ownership. Thereof, a trust is essentially a transfer of property by one to the
other to be held by the other for the benefit of some person or for carrying out some object. It is no also a
sale because a sale cannot be conditional and in sale there is consideration which is absent in a trust. The
purpose of a trust must be lawful, that is,
It should not be forbidden by law.
It should not be of such nature that, if permitted it could defeat the provisions of any law.
It should not be fraudulent.
It should not involve or imply injury to the person or property of another or
It should not be such as would be regarded by a court as immoral or opposed to the public policy.
Where a trust is created for two purposes one of which is lawful and the other is not and the two purposes
cannot be separated, the whole trust is void.
Creation of Trust
A trust of immoveable property can be created by two ways. One by a non-testamentary document and
another by a testamentary document such as a will. In other words, a trust regarding a immoveable property
cannot be created orally but it must be by a document duly registered. A trust of a moveable property can be
created either by a document or delivering the property to the trustee with necessary oral directions. If the
directions are given in writing it would amount to a trust by a non-testamentary document which may or may
not be registered.
A person who creates a trust is called the settlor, the person to whom the the property is transferred on trust
is called a trustee and the person for whose benefit the property is transferred is called the beneficiary or
cestuique trust .
Deed of Trust
A trust relating relating to an immoveable property is required to be created by a document and such
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document must state and contain five essential things with reasonable certainty namely :
the intention on the part of the author of the trust or settlor to create a trust.
the purpose of the trust.
the beneficiary.
the trust property, and
transfer of the property to the trustee.
Declaration of Trust
A trust can also be created by the author himself declaring that he would hold the property, not as owner, but
as a trustee for the benefit of some person or persons including himself and in that case the transfer of
property is not necessary as one need not transfer his property but in such a case the declaration of trust is by
the owner and he alone should be the trustee. Such a declaration would, however, require registration under
the Registration Act.
Testamentary Trust
A trust can also be created by a testamentary document that is by Will and the same conditions as mentioned
in Section 6 of the Trust Act are required to be fulfilled. such a Will also does not require registration
A trust is also created :
by application of employed trust or
as a constructive trust or
as derivative trust.
But they are created by fiction by of law and cannot be subject matter of conveyancing
Who can Create a Trust

A Trust can be created by any person competent to contract or even by a manner with the authority of a
competent court and respect of any property which is transferable and over which the author of the trust has
dispossessing power.
Trust, Private and Public

A Trust may be Private and Public.
When the purpose of the trust is to benefit an individual or a group of individuals or his or their descendants
for any legal person and who is capable of holding property, it is a private trust.
When the purpose of the trust is to the benefit the public or any section of the public, it is public trust.
Who can be a trustee

A trustee can be any person that is, an individual or a corporate body or a corporate sole, capable of holding
property and competent to contract. and he must accept the trust.
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VakilNo1 - Vakilno1 is a group of Law Enthusiasts and Legal Experts in India with a passion to
provide the latest info and articles on Indian Legal System
Related News
Displaying 45 Comments
Have Your Say
1.
Like
20
Tw eet
11
manohar malkani says:

April 3, 2013 at 4:42 pm
how do we complain in case a registered trust is not following proper rules
2.
tjjohn says:
June 2, 2013 at 1:18 pm
This is an informative article. However it is not very clear whether a major beneficiary ( Or other
beneficiaries )of a private trust be the trustees of the Trust.
As a case example. I would like to create a private trust of all my properties and be the trustee myself
during my life time. Can I appoint one of my sons as a trustee after my death.
Thanks
tjjohn
3.
praveen says:
June 24, 2013 at 2:04 pm
i want to open a unit of my trust with other name ,is it possible ?
4.
MIR NUR ALAM says:
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June 28, 2013 at 4:53 pm

Please send the guide line to provide the better opertunately of skill development for the young boys &
girls in the rural areas.
5.
pradeep kumar jayant says:

July 2, 2013 at 9:43 pm
A executed a will for wife and son for her/his life time and thereafter creat a trust for public charity.
Will not execute so fat. Meanwhile the property was sold by successor of author to third person by
regd.saledeed. What happen reg. property and trust deed.
6.
Jastej S (Team Vakilno1) says:

July 3, 2013 at 12:19 pm
The executor of the Will or the beneficiary can file a case for the recovery of property.
7.
Ranjan Agrahari says:

August 21, 2013 at 12:55 pm
Sir, I like to start a Public Charitable Trust For My Home Towm, if possible pls mail me Sample Trust
Deed.
Thank you,
Ranjan Agrahari
8.
Narasimhan Gopalakrishnan says:

October 5, 2013 at 5:44 pm
Sirs
I came across an instance.
The Deed of Trust did not have any express Clause that it could create ,float or declare a Trust.
But this Trust , taking refuge under the rights of dispossession/alienation/disposal/demising, by a deed
of declaration floated a Trust
Is this New Trust valid .Whether its corpus fund and assets woould be subject to its Management, OR
THE MANAGEMENT of the original Mother-Trust ?
Kindly help us design our further course pending for more than almost a year
9.
Abhisek Anand says:

October 22, 2013 at 11:36 pm
Sir, I like to start a Public Charitable Trust in My Home Town[in public place(Dewalay)], if possible
please mail me Sample of Trust Deed and required other docoments.
Thank you,
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Abhisek Anand
10.
Basntkumar says:
November 21, 2013 at 4:35 pm
Where private Trust are Registered?
11.
deepak tewari says:

January 9, 2014 at 10:53 pm
sir,
I want to create a trust for the purpose to run a school.
pls if possible mail me the format for trust deed
Thanks
with regards
12.
Shakeel says:
Sir, I would like to start a religious Trust in my city to comunity services to my comunities but i dont
have any place to start. I am thinking to form a trust and ask my comunities to donate so that land can
be buy and other facilities can be create to offer to my communities free of cost. Please mail me
Sample of Trust Deed and required other docoments so that deed can be made registered the same.
Thank you,
Shakeel
13.
asokan.L says:
February 8, 2014 at 4:05 pm
hi,
i need model of trust deed in tamil. pls send me to my mail id.
thanks
regards
asokan
14.
S.Subramanian says:
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How To Form A Trust
Can a foreigner be a trustee for the Indian Trust

15.
shylaja says:
March 23, 2014 at 2:35 pm
SIR,
i need model of succession op in english, please sent to my email id
16.
NEERAJ SHOREWALA says:

March 26, 2014 at 1:21 pm
hi,
i need model of trust deed in hindi/english. pls send me to my mail id.
thanks
regards
17.
amit says:
March 30, 2014 at 9:40 pm
I AMIT CHANDNA START A TRUST IN THE PUBLIC INTEREST. PL SEND ME PAPER
FORMALITIES
18.
Sagar Patil, says:

April 4, 2014 at 11:19 am
I would like to start trust for public interest at my village. I request you to guide me in following ares:
1)Can trust be formed by contribution of my own money and without any immovable property?
2)Can trust raise donation?
3)Sample of trust deed in English
4)Legal formalities in Karnataka
With Regards
SAGAR PATIL
19.
raghub says:
April 26, 2014 at 7:15 pm
Dear sir, can I start public trust with out immovable property.. Is private charitable trust also need
property ?
20.
jagjeet K.Rehel says:

April 28, 2014 at 9:02 pm
i have been searching for the text for trust it very good it contained all the short points which helps easy
to understand and ready material for forming of a trust.
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21.
How To Form A Trust
sayeed says:
June 3, 2014 at 2:13 am
Sir. My friends would like to start trust for the people those need money for medical expenditure.
Suggest me the requirments to start the trust
22.
shanaya singh says:

June 7, 2014 at 7:03 pm
what is difference btw religious and normal trust how can we open a religious trust and how many
people r involved in it and how many trustees can take part to form a big religious trust
23.
Ammad Feroze says:

June 30, 2014 at 1:29 am
Sir, I like to start a Charitable Trust School For My Home Town, if possible pleas mail me Sample
Trust Deed & guide me regarding all the formalities regarding this matter
24.
Aruna Mittal says:

July 5, 2014 at 9:36 am
Sir,In my fathers own house a trust for Art development is going to be operational shortly. I want to
know whether there is any risk regarding the house property in future. is my father has to take any
preventive step to protect his property, If yes please guide me
25.
RAJESH says:
July 11, 2014 at 10:55 am
where i can contact to making own trust . can u give me the some office no- who is the best in Delhi?
thanks
26.
ARUN P T says:
August 2, 2014 at 12:07 am
Sir,
We are a group of people who studied in a school. We would like to form a public trust to do lot of
activities which can be benefited for the society. Please advice.
1)Does the trust requires an office?
2)Can trust raise donation?
3)Sample of trust deed in English
4)What other advices can be given on this thought.
Thank You
8/13
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How To Form A Trust
Arun P T
27.
shiv shankar kumar says:

August 3, 2014 at 2:43 pm
can u pls tell us the procedure for the formation of private trust in bihar? we run a institute for tailoring,
painting,beautician etc. in patna. Do we need to have a property for the formation of private trust?
Who can be a trustee? we want to form the trust for getting our institute regd with NCVT. thanks
28.
m.sudhakar says:
August 12, 2014 at 2:12 pm
i want to build a one sai baba temple in my own land, which want to be trust is it possible, if its what is
the procedure to create a trust kindly guide me. thanks
29.
r c lalwani says:
August 21, 2014 at 12:26 pm
Sir,I am holding title on piece of land situated on Khasra No 775/1 ad measuring 1121 sq ft at
Bilaspur.Another gentleman who is holding title of land situated at 766/21 has placed Board on my plot
stating that my land belongs to him.Because of this Board placed on my plot, my sell agreement with
THIRD party is not moving ahead.What remedy i have (I)for removal of this Board from my plot and
(ii)for the cancellation of that contract as this has become time barred too but party is insisting to go
ahead with the agreement as it is to their advantage.Kindly advice me how to deal these two separate
and independent issues.Also please suggest me a senior Civil case expert at RAIPUR/Bilaspur
30.
sanatan says:
August 23, 2014 at 1:10 pm
Sir we are in the process of forming trust in maharastra but it is on the process. To whom I contact to
know about how much it is proceed. Please tell
31.
Jayesh Patel says:

September 8, 2014 at 8:05 pm
i want to open private school. so how to make trust.
32.
sandip R.Bhuva says:

September 15, 2014 at 7:51 pm
I put an application for the registration of public trust in the office of the assistant charity commissioner.
I want to establish a public temple. I create a trust deed but assistant commissioner says that religious
trust can not be created by trust deed & that type of trust created by constitution, i see the b.p.t.
act.1950 but there is no any provision in section 2(7A) of b.p.t. act relating to instrument of trust hence
give suggestion.
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33.
How To Form A Trust
p.k.singh says:
October 2, 2014 at 7:02 pm
Dear sir,
I want to form a trust for benefit of female education and skill development for underpriviledged mass
beside a business concern for earning benefit to meet the expenses required.
your guidance awaited for the purpose
34.
Biswajit Purohit says:

October 17, 2014 at 12:52 am
Respected Sir.
Whom to write to make trust the famous Maa Bindhyabasini Shrine,DVill-Sankrida Distt-Bargarh
State- Odisha. Which has been declared as state tourist destination recently.
35.
SAIRAM says:
We along with our family members would like to start a private trust to provide medical relief and
education for the poor.Hence we would like to know whether we require immovable property or with
monetary funds alone it would be possible.
36. 20 Ways to Help Your Folks (And Other Older People) says:
[] 17. Recommend a trust. It saves money and time, with less time and expenses probating a will.
(Although a wills not a bad idea, either.) []
37.
Geeta dange says:

i want to create
a trust for the purpose to run a school
pl if possible mail me the formate for the trust deed
thank you
with regards
38.
RAJA says:
December 6, 2014 at 12:19 pm
Sir, I like to start a educational Charitable Trust. if possible pleas mail me Sample Trust Deed & guide
me regarding all the formalities regarding this matter in tamil
39.
RAJA says:
10/13
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How To Form A Trust
sir,i like to start a new edcational chartable trust in tamilnadu.i need model trust deed in tamil pls send
in my mail ID thank you with regards.
40.
RAJESH KUMAR says:

December 22, 2014 at 11:00 am
SIR I LIKE TO START A NEW TEMPLE IN TAMILNADU..I NEED SOME FINANCE HELP
PLS HELP MECONTACT NO-09900932935,09902030361,09742240141,09900934531
SRI GANGAI AMMAN TEMPLE.
41.
dhirendra kumar dubey says:

I want start s pvt school, how to make trust.
42.
adv pravin says:

where to register private trust ? and under which provision
43.
S.M. Mushahid says:

January 17, 2015 at 8:53 am
Firts of all Thanks lot. Its very concise &nice. Still want to know difference between starting of school
under Charitable trust is good or Educational Trust. Please guide & help us.
44.
S.M. Mushahid says:

January 17, 2015 at 8:57 am
Firts of all Thanks lot. Its very concise &nice. Still want to know difference between starting of school
under Charitable trust is good or Educational Trust. other formalities relating Please guide & help us.
45.
dayanand says:
Rural part of Karnataka v do have Arya samaj from las 25years v want form a trust this will be very
grtful for future activities plz guide us how to form trust WHT r all the formalities
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