Trust

Trust - Process, Procedure, Document Required, Fees, Eligibility, Duration

A Trust is a property transfer made by the owner to another person for the benefit of a third party. All registered trusts in India are governed by the Indian Trust Act 1882. An individual, AOP, HUF, company or other entity can establish a Trust.

A Trust involves the following:

The person who wishes to transfer his property is known as the author/settlor/trustor/donor. Real estate, cash, stocks, or any other valuable asset can be used as collateral in a Trust.

The person who accepts the trustor's confidence to establish the Trust is known as the trustee. The author appoints a trustee to administer the Trust and distribute the assets to the beneficiaries.

The individual or entity which will benefit from the Trust is known as the beneficiary. In India, common beneficiaries of the Trust include heirs, family members, and charities.

The instrument used to declare/create this entire Trust is known as a Trust Deed. The Trust Deed is of primary importance in a Trust. It specifies the main goals for which the trust is established. It also specifies the beneficiary and the trustee's authority.

Benefits of Trust registration

A Trust that gets registered in a government office receives several benefits including:

• The applicant will be able to engage in a variety of charitable activities for the benefit of society by establishing the Trust.
• Donors who make contributions to the Trust are eligible for tax breaks.
• As it involves making public donations, registering a Trust adds credibility to the same.
• Family Trusts get protection in case of property dispute.