Trust Registration

Trust is considered to be the oldest form of Charitable Organization. Trust can be either private or public. It is primarily created for the benefit of a section of people. Trust is governed by the Indian Trust Act 1882. The main instrument for Registration of Trust is Trust Deed. The creator of the Trust also appoints trustees. The trustees are given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified. Although the requirements for forming a trust vary by state, the following requirements are typically necessary: Settlor Capacity: In order to create a valid trust, the settlor must have proper mental capacity to create the trust, meaning that they must intend to create a trust expressed with any necessary formalities of the state, such as the trust being in writing; Identifiable Property: Trust property, also known as “trust res,” must be specifically identifiable, which means that there must be a sufficient enough description to know what property is to be held; Identifiable Beneficiary: Typically, the beneficiary or group of beneficiaries must be sufficiently identifiable, meaning that they must be able to be determined at the time the trust if formed. However, in the case of a charitable trust, this is often not a requirement; and Proper Trust Purpose: The trust being formed must be proper, meaning that it cannot be created for an illegal reason. For instance, a person cannot create a spendthrift trust and hold the property in their own name for their benefit, simply to avoid creditors from reaching their assets. Courts will typically hold that such trusts are invalid.