Create and manage any trust with trust. Create. Communicate. Manage. Revoke. Trusted drafts as per statutory provisions. Infuse trust in your documents.
Trust and NGO Registration
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The Shops and Establishments Act regulates the conditions of work, lists the rights of employees in the unorganised sector and provides a list of obligations for every employer. It is mandatory for every establishment to be registered within 30 days of commencement.
A trust is basically an arrangement made with regard to future devolvement and/or use of a property by its owner. This property can be immovable such as land, houses, building structures etc., or movable such as money, shares, debentures, ornaments etc.
A trust can be distinguished from a gift or transfer of property by way of sale, mortgage, lease etc.
When a property is gifted or is transferred by way of sale, mortgage, lease etc., it involves only two parties the owner of the property and the person or persons getting the property via such transfer called the transferee.
However, when a property is arranged to be transferred by way of a trust apart from the owner and the transferee a third party called a trustee is also involved.
The property in such cases is not transferred directly to the transferee but is put in control of the trustee for the benefit of the transferee. The trustee depending upon the nature of the trust either transfers the property or its earnings to the transferee at the happening of certain events or applies the property and /or its gains for the benefit of such a transferee.
The document for create trust is termed as an instrument of the trust and the person for rules benefit the trust is created is termed as beneficiary.
Private trusts are governed by the Indian Trusts Act, 1882. This Act is applicable to the whole of India except the State of Jammu and Kashmir and the Andaman and Nicobar Islands. That apart this Act is not applicable to the following:
Property of a Hindu Undivided Family’s.
Public or private religious as charitable endowments.
create trust to distribute prizes taken in war among the captors.
A private trust can be created by any person who is of the age of majority and is of sound mind, and is not disqualified by any law. Every person domiciled in India attains majority, when he or she completes age of 18years. But in case of a minor, for whom a guardian is appointed by the court or of whose property the superintendence has been assumed by the court of wards the age of majority is twenty one years.
Create trust on behalf of a minor with the permission of a principal civil court of original jurisdiction.
Apart from a human being, a company, firm, society or association of persons is also capable of creating a trust.
Create trust when the person creating the trust, termed the author of the trust indicates with reasonable certainty by any words or acts the following.
Again, unless the trust is declared by will, or the author of the trust is himself to be trustee, the author has to transfer the trust property to the trustee
A trust in relation to immovable property has to be declared in writing signed by the author of the trust or the trustee and has to be as well registered such a trust may as well be declared by a will of the author of the trust or of the trustee. The will is not required to be registered.
A trust in relation to movable property can be either declared as in the case of immovable property or by transferring ownership of the property to the trustee.
The subject matter of the trust is called trust property. Any property, which can be transferred to the beneficiary, can be subject matter of the trust. But a mere beneficial interest under a subsisting trust cannot be the subject matter of a trust.
Certain other properties also cannot form subject matter of a trust.
No one is bound to accept a trust as trustee. Instead of accepting a trust, the intended trustee can within a reasonable period disclaim it. Such a disclaimer prevents vesting of the trust property in the trustee. A disclaimer by one of two or more co-trustees vests the trust property in the other or others, and makes him or them sole trustee or trustees from the date of the creation of the trust.
However, a trustee who has accepted the trust cannot after wards renounce it except as under.
Equally a trustee cannot generally delegate his duties either to aco-trustee or a stranger. A delegation of duties can be made only, if:
being a major of some mind consents to the delegation.
A new trustee can be appointed by
A new trustee can be appointed if
Essentials of religious and charitable trust under Hindu law
The word wakf as per Islamic law has two meanings:
Essentials of wakf
Following incomes are exempted from the application of income tax and no tax is payable on them.
The above said exemptions are not available if the income is transferred by the assessee in favor of another person without transfer of the property producing the income or when income arises from the property
A trust is an obligation attached to the ownership of the property out of confidence reposed in and accepted by the owner or declared and accepted by him for the benefit of another. Although, every person who is capable of holding property can be a trustee but not the Government of India. Similarly, a Government servant cannot be a trustee of mosque, temple or any other religious institution.
If a trustee wrongfully sales the property, the beneficiaries have the right to follow so long as it can be traced notwithstanding any immediate change in its ownership accept in the case of a bonafide sale for value and without notice of the trust.
A deed of create trust no endowment of the property. The author must prove that he intended for and divested himself of the ownership in the property and caused the same vested in Deity.
The Indian Trusts Act 1882, does not affect the Mahomedan Law of wakf or the mutual relations of the members of an undivided family as determined by the customary or general law of public or private religious or charitable endowments.
The Mahomedan law recognizes gift with a condition in the nature of trust, e.g. a gift of a property without reserving any dominion over the corpus but with the stipulation for enjoyment of the income is valid.
Although the court administers a public trust in theory under s. 92 of the Code of Civil Procedure yet some of the principles of the Indian trust act 1882, apply also to public trusts.
A Mahomedan can make an oral Wakf of his property under the Musalman Wakf validating Act, 1913 and 1930. A wakf may be also created by a will. If created by a deed, it is to be registered under s. 17 of the Indian Registration Act, in cases where the value of the property is Rs. 100 or upwards. It is a permanent dedication of some property for any purpose recognized as pious, religious or charitable in Mahomedan law. The property vest in God.
A Sunni Mahomedan can create a valid wakf even though the gifts to charity are illusory. A wakf is something quite different from a trust. It is a dedication to God only for religious or charitable purposes. According the muslim law, a valid wakf is completed by the declaration of the wakif intending thereby a dedication of the property in good faith for some pious or religious purposes. A wakf does not fail even if the objects are not at all specified or where the objects specified fail for impracticability or where the objects specified are partly valid and partly not valid.
A mutawalli has no power, without the permission of the court, to mortgage, sell or exchange waks property or any part thereof unless he is expressly empowered by the deed of wakf to do so or authorized by the court but he is to obtain the previous sanction of the Board in all such cases. The 1995 Act makes it clear that notwithstanding anything contained in the wakf deed, any gift, sale, exchange or mortgage any immovable property which is wakf property shall be void unless such gift, sale, exchange or mortgage is effected with the prior sanction of the Board and that no mosque, dargah or Khangah shall be gifted, sold, exchanged or mortgaged except in accordance with any law for the time being in force.
The Board may accord sanction to such transaction if it is opinion that such transaction is necessary or beneficial to the wakf, the consideration thereof is reasonable and adequate.