Trust Registration, Characteristics and Advantages

Introduction- Trust, Trust Registration and Beyond

A trust deed, which is a binding legal agreement between a person or group (known as settler) and an individual or group (known as trustee), is authorized by the registrar through the trust registration process. The Trust acts as a formal vehicle responsible for the equitable distribution of the settler's assets to the beneficiaries. A trust comes into effect post the registrar giving his/he approval on the trust deed. Private trusts are governed by the terms of the Indian Trust Act of 1882.The interests of trusts in India are governed by and protected by this legislation. State-specific laws such as the 1950 Maharashtra Public Trust Act regulate public trusts with the exception of Jammu & Kashmir and the Andaman and Nicobar Islands.

What is a Charitable Trust?

A trust is a separate legal entity from its trustees. A public charitable trust is established when one wants to give property for a long time and the trustees want it to be used solely for designated charitable purposes under the careful supervision of the original settlers/trustees.The Trust is typically described as a legal arrangement where the Trust's owner transfers the relevant Trustee's (also known as beneficiary) ownership of the relevant property. The goal of the Trust is to make sure that the assets of the Trustor are distributed among the beneficiaries in accordance with the terms stated in the Trust deed. Trusts are governed by a trust deed that outlines the rules and conditions under which the trustee manages the assets and distributes benefits to the beneficiaries.

Trust Registration- How to form a trust in India

Here is a step-by-step guide to help you sail through the process of trust registration. Simply follow along:

Stakeholders involved in Trust Registration Process:

Documents and other essentials required to register a trust:

Eligibility criteria to register a trust

Steps to follow in order to register a trust

What are the Advantages of Trust in India?

Wrapping Up

There are various steps involved in the intricate process of curating a legal document that not just binds but also enables trustees to direct resources towards said charitable causes. Trusts will bring along with them a host of benefits. Additionally tax exemptions by the IT Department offers critical respite allowing registered trusts to focus on their cause.