Trust Registration

What is a Trust? 

A trust is a legal entity formed to manage property (movable or immovable) for the benefit of beneficiaries. The person creating the trust (settlor) transfers the property to trustees who manage it according to the terms of a trust deed. 

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 Benefits of Trust Registration: 

  • Legality and Credibility: Registration grants legal recognition to your trust, fostering trust and transparency. 
  • Tax Benefits: Registered trusts can enjoy tax exemptions on income used for charitable purposes (subject to conditions). 
  • Succession Planning: A trust ensures smooth  (transfer) of assets to beneficiaries as per the deed. 
  • Asset Protection: Trust assets are shielded from the personal debts of the settlor or trustees. 

Process of Trust Registration: 

  1. Drafting the Trust Deed: A lawyer crafts a detailed document outlining the trust's purpose, beneficiaries, terms of management, and succession plan. 
  2. Registration: The trust deed is presented to the Registrar of Assurances or Sub-registrar of the district along with required documents and fees. 
  3. Verification: The registrar verifies the documents and may ask for clarifications. 
  4. Registration Certificate: Upon successful verification, a registration certificate is issued, officially recognizing the trust. 
Drawbacks of Trust Registration

  • Compliance Requirements: Registered trusts must adhere to certain accounting and filing norms. 
  • Cost: Stamp duty on the trust deed and registration fees need to be factored in. 
  • Limited Flexibility: Amending the trust deed after registration might involve legal complexities. 

Documents Required for Registration
  • Trust deed on stamp paper with requisite stamp duty. 
  • Identity and address proof of settlor, trustees, and witnesses.
  • Passport-sized photographs of all aforementioned parties.
  • Proof of corpus (property) to be held in trust. 

Eligibility for Trust Registration

  • Minimum Two Trustees: At least two competent individuals are required. 
  • Valid Trust Deed: The deed must comply with the Indian Trusts Act, 1882. 
  • Lawful Objectives: The trust's purpose should be legal and for the benefit of beneficiaries. 

Checklist for Trust Registration: 

  • Finalize the trust's purpose and beneficiaries. 
  • Draft a comprehensive trust deed with a lawyer. 
  • Arrange for identity and address proofs of all parties involved. 
  • Gather documents related to the trust corpus. 
  • Submit the application with the required fees to the registrar's office. 

Why Choose 24efiling for Trust Registration? 

24efiling streamlines your trust registration journey with: 

  • Expert Assistance: Our legal partners guide you through the process and ensure compliance. 
  • Hassle-Free Document Handling: We take care of document preparation and submission. 
  • Time-Saving Efficiency: Our efficient system ensures swift registration. 
  • Cost-Effective Solutions: We offer competitive fees for our services. 

 Ready to establish your trust? Contact 24efiling today for a free consultation! 

Click the button below to schedule a free consultation with our trust registration experts. 

 

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Registration is mandatory for trusts holding immovable property. 

The process typically takes 1-2 weeks, subject to verification by the registrar. 

While online forms might be available, physical submission of documents is usually required. 

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