No clear statutes are available for the formation
of a Charitable Trust. The only Central Legislation
available is the Charitable and Religious Trust Act,
1920. This Act is very limited in its application,
and does not provide any effective control over Public
Charitable Trusts.
Preparation of trust deed
To form a valid Public Charitable Trust it is always
desirable to prepare a Trust Deed. Such Trust Deed
should clearly specify and satisfy the certainties
of a Trust. For the sample format of trust deed, click
here.
A trust deed, generally, incorporates the following:
(i)
|
the
name(s) of the author(s)/ settlor(s) of the trust |
(ii)
|
The
name(s) of the trustee(s) |
(iii)
|
the
name(s) if any, of the beneficiary/ies or whether
it shall be the public at large; |
(iv)
|
the
name by which the trust shall be known; |
(v)
|
the
place where its principal and/or other offices
shall be situate; |
(vi)
|
the
property that shall devolve upon the trustee(s)
under the trust for the benefit of the beneficiary/ies; |
(vii)
|
an
intention to divest the trust property upon the
trustee(s); |
(viii)
|
the
objects of the trust; |
(ix)
|
the
procedure for appointment, removal or replacement
of a trustee, their rights, duties and powers,
etc; |
(x)
|
the
rights and duties of the beneficiary/ies; |
(xi)
|
the
mode and method of determination of the trust |
Registration of trust deed
Registration is to be made as per the provisions of
the Registration Act, 1908. It may be noted that the
trust deed and not the trust is registered. The deed
has to be registered with the Sub-Registrar of the
registration department of the respective State Governments.
For Public Charitable Trusts in the State of Maharastra
and Gujarat, registration is to be made under The Bombay
Public Trust Act, 1950.
