trust registration
It must fulfil a number of requirements, one of which is the registration process, in order to benefit from a Trust. Do you intend to file the trust? Make contact with us and complete the Trust registration. From advice to compliance-related compliance guidance for trust registration, we will be here to help.
A trust registration, which is a binding legal agreement between the settlor and the trustee, is legalised by the registrar of the relevant country through the trust registration process. The Trust acts as a legal vehicle responsible for the equitable distribution of the settlor’s assets to the targeted beneficiaries.
steps :
- Selection of name of your trust
- Drafting of a comprehensive Trust Deed
- Grant of Trust registration Certificate
Benefits of trust registration
To Involve In Charitable Undertakings
A charitable trust is basically a technique to organise your assets so that they can simultaneously benefit you, concerned beneficiaries, and a cause. Such a Trust could offer a person looking to give non-essential assets like stocks or real estate to society a number of benefits.
Accessibility to tax exemptions
All registered tests in India offers a number of tax exemptions to all registered trusts. They are qualified to take advantage of numerous tax relaxations because, unlike NGOs, the Trust’s purpose is not to generate profits. However, only trusts with access to a recorded deed are eligible for such a benefit.
Trusts are particularly helpful in ensuring that capital and income taxes are relaxed. The Trust may enable stronger protection from strict tax rules for the settlor, the beneficiaries, and the trust assets.
Immigration /Emigration of Family
When a person and her or his family go abroad, it is the ideal time to set up a trust to avoid taxes in the new country, protecting the family’s assets and allowing for organisational flexibility.
Ensures Legal coverage for the family Wealth
Trust can be used to allocate specific assets such as land/ an interest in the entity formed by the family, which otherwise would not be practical for a trustor to split between individuals.
Types of trust
There are three types of trusting in India
- Public Trust
- Private Trust
- Public Cum-Private Trust
private trust
A private trust is a legal structure made for personal gain rather than for a public or charitable cause. It was established to provide financial support to one or more recipients who the Trustor knew. The benefits of Private Trust are only available to the named beneficiaries and it has no charitable intent. The Indian Trusts Act of 1882 must be followed by these trusts.
public trust
A public trust fundamentally serves the interests of all citizens. Public trusts, in contrast to private trusts, are established for philanthropic or religious purposes and do not operate in accordance with the Indian Trusts Act. Such Trust complies with the already applicable general law. These trusts may be created inter vivos by will, just like the private Trust.
public cum-private trust
The Public-Cum-Private Trusts have two purposes, as their name implies. They are permitted to spend their revenue for both private and public objectives. That suggests that either public or private individuals, or both, could be beneficiaries of such a trust.