TRUST FORMATION

What is Trust

“Trust” is a transfer of property from the owner to the next for the benefit of a third person along with or without himself or a statement by the proprietor to hold the property not for him and another.

Part 6 of Indian trusts Act, 1882 provides that a trust is Made when the Writer of This Hope indicates with reasonable certainty from any words or acts:-

NGO Legal existence in India can be in the Form of :

1. An intention on his part to create thereby a trust.
2. The purpose of the trust.
3. The beneficiary, and
4. The trust property and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transfers the trust-property to the trustee.

The Indian trusts Act 1882 provides that no trust regarding immovable property is valid unless announced by a non-testamentary instrument in writing signed by the writer of the trust or the trustee and registered, or from the will of the writer of the trust or of the trustee.

1. A person who creates a trust is called the settler or Writer, the person to whom the Land is Moved on Hope is called a trustee and the person for whose benefit the property is transferred is called the beneficiary
2. Minimum 2 persons are required to create a Trust
3. Private and public trustA trust may be personal or public.When the purpose of the trust is to gain an individual or a group of people or their descendants for any lawful person and who is capable of holding property, it is private trust.When the purpose of the trust is to the advantage that the public or any section of the general public, it’s public trust.
4. Who can be trusteeSection 10 of the Indian Trusts Act 1882 inter alia provides that every individual capable of holding property might be a trustee; but where the trust requires the exercise of discretion, he cannot sexecute it unless he is competent to contract.
5. Who may be a beneficiaryPart 9 of the Indian Trusts Act 1882 inter alia provides that every individual capable of holding property may be a beneficiary.
6. LegislationDifferent states in india have different hopes acts in force that regulate the state in the country; from the lack of a Trusts Act in any specific state or territory the general fundamentals of the Indian Trusts Act 1882 are implemented.