FORMATION OF TRUST
Any individual can create his own Trust for self & family in following manner:
- 1. Create a Private or Family Trust anytime during life for self & family. It is not Public or Charitable Trust.
- 2. It does not require any permission of law or any formalities with Charity Commissioner office.
- 3. Create a Private Trust for specific purpose – for Special Child or for Minor kids or for smooth business empire or for ageing Parents or Self
- 4. Creation of Trust after demise by writing a Will and annex Draft Trust Deed
A Trust can be formed by any individual who is able to do legal contract i.e. above 18 years of age, sound mind and not disqualified due to any law.
TRANSFER OF ASSETS TO TRUST CAN HAPPEN IN FOLLOWING MANNER:
- 1. Transfer immovable or movables to Trust anytime during lifetime as per wishes of Trust Creator / Author / Settlor
- 2. Transfer of immovable or movables after demise via Will wishes
- 1. Trust is a separate Legal person hence tax planning tool
- 2. An individual can control use of his wealth even after death via Trust deed rules for few years when kids or family are yet to be matured enough to manage wealth or business empire
- 3. For special children where their health, safety, care can be managed via Trust deed very well even after they leave their special children this world
- 4. For minor kids a Trust is good tool in the event when both parents die simultaneously at young age
- 5. In India there is no inheritance tax but if Govt levy such tax in future, whole of assets transferred from individual to Trust during lifetime does not attract inheritance tax on wealth
- A. Draft Trust Deed as per wishes / rules and beneficiaries
- B. Decide Trustees
- C. Register Trust with Registration authorities
- D. Transfer assets to Trust with payment of required stamp duty
- E. For Trust via Will – draft Will and Trust Deed, attached draft Trust Deed with Will, sign Will as per Will requirements.
- It is based on time & efforts, location, asset & trust rules, complexities