Protect assets and funds located in India by placing the assets into trust with this Private Trust Deed.
- Purpose of Trust. The Trust is established for the benefit of a named beneficiary as life interest, and a trustee is appointed to administer the Trust and distribute the Trust income and assets as set out in the Trust Deed.
- Taxes and Costs. Prior to distribution of the Trust Fund, the trustee will pay all costs and expenses, including any taxes or other charges payable.
- Trust Income. The net income from the trust fund will be used for the maintenance and residence of the beneficiary during his/her lifetime.
- Trustee's Powers. The trustee has the power to accept donations, make investments, set up and operate bank accounts, borrow and lend money, purchase and lease property, enter into partnerships, and otherwise deal with the income of the Trust.
- Delegation of Duties. The trustee may hire or appoint other persons to assist him in his responsibilities.
- Replacement Trustee. The trustee has the power to appoint a replacement trustee to take over his duties if he is no longer able to perform them.
This India Private Trust Deed is available in MS Word format, and is fully editable to fit your circumstances.
PRIVATE TRUST DEED THIS INDENTURE made effective at ____________________________________ [location], as of the _____ day of ______________________, _______. BETWEEN: [NAME OF SETTLOR] an Indian Inhabitant of [city] (“Settlor”) - and - [NAME OF TRUSTEE] an Indian Inhabitant of [city] (“Trustee”) WHEREAS Settlor being absolutely seized and possessed of, or otherwise well and sufficiently entitled to, a sum of __________________________ Rupees (Rs. _________________) is desirous of settling the said sum for the benefit of life interest for ___________________________ [name of beneficiary] and thereafter for the ________________________________ [name of trust] Trust. AND WHEREAS, at Settlor’s request, Trustee has agreed to act as the First Trustee of these presents, as is testified to by his joining in and executing these presents. AND WHEREAS Settlor has, prior to the execution of these presents, handed over to Trustee the said sum of _________________________ Rupees (Rs.__________________) to be held by Trustee upon the Trusts and with and subject to the powers, provisions, declarations and agreements hereinafter contained of and concerning the same. NOW THIS INDENTURE witnesseth as follows: 1. In consideration of the natural affection Settlor bears toward Trustee, Settlor DOTH HEREBY CONFIRM AND DECLARE that he has transferred the right over the said sum of _____________________ Rupees (Rs.______________) to Trustee TO HAVE AND TO HOLD the same unto Trustee and the investments for the time being and from time to time representing the same for the use, purpose and benefit with, and subject to, the powers and provisions hereinafter declared and contained of and concerning the same. 2. The name of the Trust shall be “_____________________________”. 3. “Trust Fund” shall mean the said sum of ________________________ Rupees (Rs.______________) and, unless repugnant to the subject or context thereof, shall also include any other property that may be acquired by Trustee, or come to Trustee’s hands, by virtue of these presents or otherwise howsoever in relation to these presents, including, but not limited to, all gifts, either in cash or other properties movable or immovable or otherwise which may be received by Trustee from time to time for the purpose of these presents. 4. The Trust Fund shall be distributed upon the death of Trustee or on the ___________ day of _________________________, ____________, whichever occurs earlier (hereinafter referred to as the “Distribution Date”). -2- 5. On the Distribution Date, Trustee (or Trustee’s heirs, successors or assigns) shall distribute, transfer and convey the Trust Fund, together with any income, to ___________________________ [name of trust}. 6. It is hereby agreed and declared between the parties of these presents that Trustee shall hold and stand possessed of the Trust Fund and, subject to the powers, provisions, agreements and declarations hereinafter contained and concerning the same, and the income arising from the Trust Fund under or by virtue of the provisions of this Deed upon the Trust to receive the annual or other income of the Trust Fund and all other income arising under this Deed (income for this purpose being regarded as including capital gains referred to in the Income Tax Act), and in the first place to reimburse and or discharge any and all costs and expenses which may be incurred in or about the administration of the Trust of these presents, including, but not limited to, any government dues, income tax or wealth tax, or other taxes levied or revisable upon Trustee or upon any beneficiary or persons having interest in the corpus or in the income of the Trust Fund, ground rent, insurance premium, cost of ordinary repairs, salaries and wages of the servants and all other usual outgoing charges and expenses of, and incidental to, the provisions of the Trust Fund in respect of, or by reason of, such interest of such beneficiaries or persons and including also all outgoings and municipal or other rates, assessments and duties, and the cost of ordinary repairs of any immovable property forming part of the Trust Fund. 7. After deduction of the expenses detailed in Section 6 above from the gross income of the Trust Fund, the net income from the Trust Fund shall be paid to ___________________________________, the beneficiary herein (hereinafter referred to as the “Beneficiary”), for his maintenance and residence during his lifetime. Trustee shall not be entitled or bound to ask the Beneficiary to give account for any amount so paid during his lifetime until his death. 8. Upon the death of the Beneficiary, the entire income, together with corpus, shall be treated as the corpus of the ___________________________ [name of trust] (which was settled on the _________ day of _____________________, __________ by _______________________) and thereafter it shall be applied for the benefit of _________________________________ [name of trust]. In accordance with the provisions contained in the aforesaid Trust Deed dated the _________ day of _________________________, _____________. 9. Trustee shall have the power to receive and accepts gifts and donations of any movable or immovable properties, and any such amounts as and when received shall form part of the Trust Fund. 10. Trustee shall be entitled to invest all moneys liable and authorized in any one or more of the following: (a) any of the modes authorized by the Indian Trust Act; (b) movable properties, including, but not limited to, shares, debentures, bonds or securities of any joint stock company, corporation, Unit Trust of India or Mutual Funds or other institutions; (c) deposits with banks, joint stock companies or partnership firms on such terms and conditions as Trustee, at its sole discretion, deems fit; (d) the purchase of any immovable property, whether freehold or leasehold; (e) granting of loans to individuals, firms, association of persons, joint stock companies or otherwise whatsoever; -3- (f) carrying on business, either by himself or in partnership or otherwise as Trustee deems fit, and close and restart any business, and utilize the profits derived therefrom for the objects aforesaid; 11. Trustee shall have the power to vary, from time to time, the investments for others of the same, or of a like or different nature. 12. Without affecting the generality of the powers, provisions and authorities vested in Trustee under these presents, Trustee shall have, in addition thereto and not as a substitution thereof, the following powers, and shall be entitled to execute all acts, documents and things necessary, ancillary or incidental thereto, to wit: (a) to open and operate a bank account or bank accounts of the Trust in any bank(s) of repute, in the name of the Trust. All amounts received by way of dividends, interest, rent, profits or other income shall be credited to the said amounts; (b) to borrow moneys or raise loans and funds required for any purpose, power or provisions, either directly or indirectly connected with the objects of this Trust, or for any object incidental to these presents; (c) to draw, make, accept, endorse, discount, execute and/or issue promissory notes, bills of exchange and other negotiable instruments; (d) to purchase, lease or sub-lease, or take-on on a leave and license basis, any co- operative schemes or any other arrangements, or, in exchange, hire or otherwise acquire or deal with or own any immovable or movable property and any rights, benefits or privileges which Trustee may deem necessary or convenient; (e) to purchase on an ownership basis, or take on rent or compensation, residential flats, business premises, industrial sheds or factories, godowns or open plots of land, and let out the same, or give on a leave and license basis, or for compensation or warehousing charges or storage charges; (f) to construct, develop, maintain and/or alter any buildings, structures, industrial estates, factories or works of any nature whatsoever necessary or convenient, or which Trustee, at his sole discretion, deems fit; (g) to sell, improve, manage, develop, exchange, lease, mortgage, charge, pledge, hypothecate, dispose of, or deal with all or any part of the Trust Fund and premises hereby settled or any part(s) thereof; (h) to organize agencies or offices, or to make any other arrangements necessary for conducting and managing the Trust, and to appoi
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