Deed of Declaration of Trust
The Deed of Declaration of Trust is an uncompleted trust deed template, and the supplied document does not identify an issuing department, government order number or completed execution date. It provides for creating an irrevocable, non-profit trust, appointing trustees, holding movable and immovable property, managing funds and transferring net assets to a similar organisation on dissolution.
What the document covers
The Deed of Declaration of Trust is a template for an author of a trust to establish a trust and transfer an initial cash amount to its trustees. The printed execution line refers to 2017, but the day, month, place, trust name, registered office, initial fund and several governance details are blank.
The stated purpose is research in alternative medicine and acupuncture for community welfare without discrimination. The benefits are open to everyone irrespective of caste, religion, race or sex, and the trust must not conduct activities with an intention of earning profit.
Who may be affected
The Deed of Declaration of Trust is relevant to the author, trustees, donors, lenders and anyone dealing with property owned or proposed to be acquired by the trust. It is also relevant to a buyer examining whether trustees have authority to deal with trust property. Because the supplied document is incomplete, it does not identify any particular trust or property.
Property and funds
The trust property may include:
- The initial cash settled by the author.
- Movable or immovable property acquired by purchase or otherwise.
- Donations, gifts, legacies, grants and contributions.
- Future additions, income, sums and assets becoming trust property.
The Board of Trustees may purchase immovable property for the trust's objects or as a source of income. It may also invest trust funds in movable or immovable property, subject to the Income Tax Act, 1961 and other applicable law.
Management and decision-making
Key provisions include:
- Administration rests with a Board of Trustees comprising a Managing Trustee, Joint Managing Trustee, Deputy Managing Trustee and three trustees.
- Vacancies are filled by the remaining members selecting a suitable person.
- A trustee ceases to hold office through resignation, insolvency or removal by a majority for activities detrimental to the trust, its administration or funds.
- The Managing Trustee, Joint Managing Trustee and Deputy Managing Trustee must jointly execute deeds and documents for the trust.
- The Managing Trustee and Deputy Managing Trustee jointly operate bank accounts.
- Accounts must be maintained, reported annually and audited every year by a Chartered Accountant.
- Trustees receive no remuneration, but may recover out-of-pocket expenses.
- Amendments to the trust deed require approval from the Commissioner of Income Tax.
Duration and dissolution
The trust is irrevocable and its activities are limited to India and its Union territories. On dissolution, its net assets must be transferred to an association, trust or society with similar objects.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this document identify a specific trust or property?
No. The trust name, registered office, property details and several other particulars are left blank, so the supplied document does not identify a completed trust or a specific property.
Can the trust buy or hold land and buildings?
Yes. The trustees may acquire immovable property for the trust's objects or as a source of income, and future immovable property may form part of the trust property.
Who can sign property documents for the trust?
The deed states that the Managing Trustee, Joint Managing Trustee and Deputy Managing Trustee must jointly execute deeds and documents representing the trust.
Can trust property be distributed to the trustees when the trust closes?
The document does not provide for distribution to trustees. It requires the net assets on dissolution to be transferred to an association, trust or society having similar objects.
