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Query on setting up a trust

Kapil Bajaj (Service) (112 Points)

11 November 2008

Hiiiii All,

I want to set up a social and charitable Trust. Can any one of u help me out in telling me as to how in detail a Trust is to be formed??

Regards,

Kapil

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3 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 11 November 2008

Get hold of a lawyer. Get him to draft a trust deed mentioning the property under trust, and administration of trust and beneficiaries. The deed has to be signed by all trustees and the person bequething the property to the trust. In the case of public trust it will require registration as well under the Public Trust Act.

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Kapil Bajaj (Service) (112 Points)
Replied 14 November 2008

Sir,

Can you throw some more light on this matter in detail.

Regards,

Kapil

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 14 November 2008

The trust in order to qualify as a public trust has to be registered under Trusts Act of the concerned states. There has to be a trust deed which clearly specifies the terms and conditions and signed by all trustees.The person who is making over the property , must do so in writing. If it is an immovable property, such making over will require registration in the name of trust. There has to be a trust deed which clearly specifies the terms and conditions and signed by all trustees. If it has to get tax exemption on income earned, it has to register under IT Act also.