Registration of Trust

A Trust is formed when an owner of a property (trustor) transfers it to a person known as a trustee, for the benefit of a third party known as the beneficiary. There are two types of trust- Public Trust and Private Trust. Trust is governed by and registered under the Indian Trust Act, 1882.

Eligibility/Requirements of Trust Incorporation

· Minimum of two trustees.

· Forming Trust Deed.

Documents required for Trust Incorporation

1.Proof of identity of the trustors and trustees. Such documents include Aadhaar, PAN, Passport, Driving license or any other   Government-issued identity document would be required. (Self-attested copy)

2.Proof of address of the trustors and trustees. Such documents include bank statements, electricity bills, water bills, gas bills, and telephone bills. (Self-attested copy)

3.No Objection Certificate from the owner of the Address to   be used as a Registered Office address

4.In the case of leased property, the copy of the lease deed and copy of the Electricity bill   / Water bill / Gas Bill / Telephone Bill for registered office property   (should not be older than 2 months).

5.In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill for registered office property (should not be older than 2   months).

6.Trust deed on Non Judicial stamp paper.

7. Passport Sized Photograph of all the members.

Advantages of Trust

· Management continues even after the disability of the member.

· Better control over assets.

· Investment management remains uninterrupted.

· Flexibility of using funds.

Disadvantages of Trust

· High incorporation cost.

· Cash can be accessed by creditors.

· Not so responsive to changes.

· Property has to be re-registered in the name of trust which involves cost.

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