TRUST

A Trust is registered under The Indian Trust Act 1882 and provides for the provision related to Trust. The trust is a harmonization where the owner of the Trust transfers the property to a trustee. Here, the objective of transferring the property is to provide the benefit to a third party. The property is transferred to the trustee by the trustor along with a proclamation that the property should be held by the trustee for the beneficiaries of the trust.

TYPES OF TRUSTS
There are two types of trusts in India: private trusts and public trusts. While private trusts are governed by the Indian trusts Act, 1882, public trusts are divided into charitable and religious trusts. The Charitable and Religious Trust Act, 1920, the Religious Endowments Act, 1863, the Charitable Endowments Act, 1890, the Bombay Public Trust Act, 1950 are some of the statutes for the enforcement of public trusts in India.

Private Trust

A Private trust is a trust that is constituted for the benefit of 1 or more individuals who are, or within a given time may be, definitely ascertained. Private Trusts are regulated by the Indian Trusts Act 1882. These trusts may be created inter vivos or by will.

Public Trust

A Public Trust is a trust which is established wholly for the benefit of Public at large. Key points for Public Trusts are given bellow:-

Public trusts are basically charitable or religious trusts and are regulated by the general Law.
The regulations of Indian Trusts Act do not apply on Public Trusts.
Similar as the private trusts, public trusts may be established inter vivos or by will.

Public-Cum-Private Trusts

The trusts whose part of the income may be utilized for public purposes and a part may go to a private person or persons are known as Public-cum-Private Trusts.

Classification In Terms Of Motive Of Formation

Recently, trusts can also be used as a vehicle for investments, such as mutual funds and venture capital funds. These trusts are governed by Securities and Exchange Board of India (SEBI). Classification in terms of motive of formation is as follows:-

*Private Trust
Settlor creates a Trust primarily for benefit of one or more particular individuals as its Beneficiary.

*Public Trust
Beneficiaries are the general public or a class as a whole. It has some charitable end as its Beneficiary.

*Simple Trust
Trustee is just a passive depository of the Trust property. There are no active duties expected from Trustee and no directions are given to him.

*Special Trust
Trustee is active and acts as an agent to execute the Grantor’s wishes. This Trust is operative.

*Express Trust
Here, the Settlor creates a Trust over his assets either in present or upon his death. It can be either by way of a will or Trust deed.

*Implied Trust
It is created where some legal requirements for an Express Trust are not met, but intention on behalf of the parties is to create a Trust that is presumed to exist.

*Others depending on the type of object(s).

DOCUMENTS REQUIRED FOR TRUST REGISTRATION

Proof of Identity for Trustor & Trustee-Aadhaar Card, Voter ID, Passport, Driving License
Address Proof of Registered Office- Copy of Certificate of Property/Utility Bills (Telephone, Water, Electricity Bill)
In the case of rented property, NOC from the Landlord is required.
Objective of the Trust Deed.
Particulars of the Trustee and settlor (Self-attested copy Id and Address Proof along with the information related to occupation).
Trust Deed on Proper Stamp Value.
Photographs of Trustee and settlor.
PAN Card of Trustee and settlor.

In addition to that, the Trust deed contains the following information:-
Total number of trustees.
The Registered address of the trust.
Proposed name of the trust.
Rules and regulations to be strictly followed by the Trust.
Presence of settlor and 2 witnesses at the time of registration of Trust.