A private trust deed under the Indian Trusts Act 1882 by which an author (settlor) transfers property to trustees to hold for named beneficiaries (typically family members).
Trust Deed (Private Trust)
THIS DEED OF TRUST is made at [City] on this [Day] day of [Month, Year].
BETWEEN
[Name of Settlor], S/o [___], aged [__] years, residing at [Address] (hereinafter called the "Settlor" / "Author of the Trust", which expression shall, unless repugnant to the context, include his heirs, executors and administrators) of the ONE PART;
AND
(1) [Name of Trustee 1], S/o [___], residing at [Address]; and (2) [Name of Trustee 2], S/o [___], residing at [Address] (hereinafter collectively called the "Trustees", which expression shall include the trustee(s) for the time being of these presents) of the OTHER PART.
WHEREAS the Settlor is absolutely seized and possessed of and/or otherwise well and sufficiently entitled to the sum of ₹[amount] / the property described in the Schedule hereto (the "Trust Property"), and is desirous of settling the same upon trust for the benefit of the beneficiaries named herein; and the Trustees have agreed to act as trustees of this Trust;
NOW THIS DEED WITNESSETH AS FOLLOWS:
Clause 1. Name of the Trust. The Trust hereby created shall be known as "[Name of the Trust]".
Clause 2. Settlement / Transfer of Trust Property. The Settlor hereby transfers, assigns and makes over unto the Trustees the sum of ₹[amount] / the property described in the Schedule, TO HAVE AND TO HOLD the same upon the trusts and for the purposes hereinafter declared. The Settlor may, and any other person may with the consent of the Trustees, add further property to the Trust from time to time, which shall then form part of the Trust Property.
Clause 3. Beneficiaries. The beneficiaries of this Trust are: (a) [Name, relationship, share/interest]; (b) [Name, relationship, share/interest]; (c) [Name, relationship, share/interest] (collectively the "Beneficiaries"). [State whether the trust is specific/determinate — each beneficiary and share identified — or discretionary.]
Clause 4. Objects / Purpose. The Trust is created for the maintenance, education, marriage, medical care, advancement and general benefit of the Beneficiaries, and for such other lawful purposes for their benefit as the Trustees may determine.
Clause 5. Powers of the Trustees. The Trustees shall have power to: (a) invest the Trust Property in any securities, bank deposits, immovable property or lawful investments; (b) accumulate or apply the income for the benefit of the Beneficiaries; (c) sell, lease, exchange or otherwise deal with the Trust Property in the interest of the Beneficiaries; (d) open and operate bank accounts; (e) borrow and secure loans for the purposes of the Trust; and (f) exercise all powers conferred on trustees by the Indian Trusts Act, 1882.
Clause 6. Duties of the Trustees. The Trustees shall execute the trusts with the care of an ordinary prudent person (Sections 11–13 of the Act), keep the Trust Property distinct, maintain proper accounts, and not use the Trust Property for their own benefit (Sections 51 and 53). The Trustees shall be entitled to reimbursement of expenses under Section 32.
Clause 7. Distribution. The Trustees shall pay or apply the income and/or corpus to or for the benefit of the Beneficiaries in the shares set out in Clause 3 / at their discretion, and upon [the youngest beneficiary attaining [__] years / the specified event] shall distribute the corpus among the Beneficiaries in the said shares.
Clause 8. Vacancy and Appointment of Trustees. On the death, resignation, incapacity or disqualification of a Trustee, a new trustee may be appointed by the continuing Trustee(s)/Settlor in accordance with Section 73 of the Indian Trusts Act, 1882.
Clause 9. Trustees\' Meetings and Decisions. The Trustees shall act unanimously / by majority; decisions shall be recorded in a minute book maintained for the Trust.
Clause 10. Accounts and Audit. The Trustees shall maintain proper books of account and, where required, have them audited annually.
Clause 11. Revocation / Variation. This Trust shall be [revocable / irrevocable]. [If revocable:] The Settlor reserves the right to revoke or vary this Trust in whole or in part during his lifetime by a registered instrument, subject to the provisions of Section 60 of the Indian Trusts Act, 1882 and Section 61 of the Income-tax Act, 1961.
Clause 12. Governing Law. This Trust shall be governed by the Indian Trusts Act, 1882 and the laws of India; the courts at [City] shall have jurisdiction.
THE SCHEDULE ABOVE REFERRED TO (Trust Property)
[Describe the cash / bank deposit / immovable property with full particulars, boundaries and value ₹[amount].]
IN WITNESS WHEREOF the Settlor and the Trustees have set their hands to this Deed of Trust on the day, month and year first above written.
____________________
Settlor | ____________________
Trustee(s) |
Witnesses:
1. ______________________
Name & Address | 2. ______________________
Name & Address |
