• Trust

We are a Portugueses religious association and pretend to have a religious and charity Trust in India, Delhi.

1 - We wish to know what is more suitable for us? A private Trust or a public Trust? What are de benefits of a Private Trust or a Public Trust?

2 - The trustee can be a portuguese association?

3 - How the trustees can be appointed and dismissed?

4 - The beneficiaries are necessarily identified?

5 - I need lawyer services to get this Trust done. How much can it cost me?

Thanks for your help.

Ana Gomes
Asked 14 days ago in Civil Law from Portugal

1. Sir if the purpose is religious then a public trust must be created. The public trust income is exempt from the taxation while in private trust created by individuals it can be taxed in hand of benificiaries.

2. Yes a association be a trustee.

 

03. The rules and bylaws of trust needs to be made to appoint, dismiss or retire a trustee.

 

04. In public trust there are number of benificiaries, though they need to be identified.

05. Sir  the lawyer will charge based on his experience.

Shubham Jhajharia
Advocate, Ahmedabad
9454 Answers
31 Consultations

5.0 on 5.0

 

 

1) public trust would be suitable for your association 

 

2) Generally, 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 governed by provisions of public trust act 

 

3) If the beneficiaries make up a large or substantial body of public, then the trust in question is public. A public trust exists “for the purpose of its objects, the members of an uncertain and fluctuating body,” and is managed by a board of trustee. If, however, the beneficiaries are a narrow and specific group then the trust is private

 

4)In case of breach of public trust, either the Advocate General or two or more persons having interest in the trust can institute a suit regarding following matters:

1. Removal of a trustee
2. Appointment of a new trustee
3. For vesting any property in a trustee
4. for directing a trustee who has been removed as a trustee to provide possession of any trust property in his possession to the person entitled to the possession of such property

 

5) In case of Charitable or Religious Trust in relation to an immovable property, for claiming exemption under Section 11 of the Income Tax Act, 1961 it is essential that the instrument of trust is duly registered.

 

 

6) legal fees vary depending upon the lawyer engaged by you 

Ajay Sethi
Advocate, Mumbai
54249 Answers
3256 Consultations

5.0 on 5.0

For religious and charity trust public trust is more suitable because income of public trust for religious and charity is  exempted instead of private trust it will be taxed in hands of individual 

Yes

It's according to rules and laws of trust, trustees can be appointed and dismissed as per trusts need

Yes

Depends on lawyer 

Dimple Jain
Advocate, Jodhpur
205 Answers

Not rated

1.Public and private trust can be distinguished in a number of ways. If the beneficiaries make up a large or substantial body of public, then the trust in question is public. All one needs to do is to draft a trust deed stating the trustees, the objectives of the trust, and the intended beneficiaries who are a part of the general public. The trust is then registered under the State Trusts Act, thereby making the trust eligible for government tax rebates, namely the Income Tax Act. Generally, a public trust is of a more permanent nature than a private trust.

2. Yes. The trustee can be a Portuguese association. 

3. For appointment/ dismissal of trustee/s would be based on the by-laws drafted by your counsel. 

4. Yes. The beneficiaries need to be necessarily identified in case of private trust, as well in case of Public trust. The trust needs to mention the date on which the beneficiary becomes the owner of the property.

5. Costs for legal compliance can be discussed on call. 

 

Regards. 

Siddharth Jain
Advocate, New Delhi
2520 Answers
28 Consultations

5.0 on 5.0

Hi Ana,

Registration Process of Public Charitable Trust

The Indian Trust act defines creating a Trust as “A trust is created when the author of the trust indicates with reasonable certainty by any words or acts:
(a) an intention on his part to create thereby a trust,
(b) the purpose of the trust,
(c) the beneficiary, and
(d) the trust-property, and (unless the trust is declared by will or the author of the trust is himself to be the trustee) transferred the trust-property to the trustee”. A Public Charitable Trust has to be registered with the office of the Charity Commissioner who has jurisdiction over the trust. 

Will provide you full details and guidance on Trust and NGO at reasonable rates.

Ganesh Kadam
Advocate, Pune
4453 Answers
29 Consultations

5.0 on 5.0

foreigner is allowed to create a trust in India under FEMA.
In Public Trust Trustee must be a resident of  India. Foreigners, OCI card holders and NRIs residing abroad for more than six months cannot become member of a Trust.

Mohammed Mujeeb
Advocate, Hyderabad
3200 Answers
2 Consultations

4.5 on 5.0

 

yes they can create a trust private trust will be more beneficial than public

A foreigner or a foreign organisation is allowed to create a trust in India under FEMA.

RBI permission is also required and guidelines of RBI has to be strictly followed. They cant indulge in agricultural activities or purchase of agricultural land.

Trustees can be appointed or dismissed.

Exact amount of trust cost can be only told when you approach me through telephonic consultation after knowing complete details.

Prashant Nayak
Advocate, MUMBAI
3404 Answers
2 Consultations

4.8 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you want to go for a trust, but confused in between private and public as to for what you should go.
  2. Private trust is good where you are supposed to help a group of people of your vicinity only.
  3. But, if you go for public then it puts the responsibility on you to work for the society as a whole, for all people needing the help which you may provide to them “In Rem”.
  4. For getting the society registered may not cost you to much.
  5. For further any change in it with respect to anything which is already there not the MOU, you may have to move an application before the society registrar’s office.

 

If you like my answer then may contact me through Kaanoon for further help.

Sanjay Baniwal
Advocate, South Delhi
2561 Answers
5 Consultations

4.9 on 5.0

Dear Client,

Private trust is for benefit of particular section whereas public trust is for whole world.

Yes,

As per conditions of trust deed

Business of trust and beneficiaries

Cost differ as per lawyer`s fees.

Yogendra Singh Rajawat
Advocate, Jaipur
6468 Answers
5 Consultations

4.7 on 5.0

Trust is defined in section 3 of the Indian Trust Act, 1882 as “an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another or of another and the owner. 

Private Trusts in India. A trust is called a private trust when it is constituted for the benefit of one or more individuals who are ascertained. Private trustsare governed by the Indian Trusts Act, 1882. Aprivate trust may be created inter vivos or by will.

If the beneficiaries make up a large or substantial body of public, then the trust in question is public. A public trust exists “for the purpose of its objects, the members of an uncertain and fluctuating body,” and is managed by a board of trustee.

 

As per Section 10, any person who is capable of holding property may be a trustee; except to the condition of discretion of trust, in that case, he cannot execute it unless he is competent to contract.

The trust itself will generally set forth when and how a beneficiary or beneficiariescan remove and/or replace a trustee. ... Sometimes the trust states that a trusteemay only be removed by a court, or the trust is silent on the issue, in which case the trustee of an irrevocable trust can only be removed by a court.

t sometimes happens that beneficiaries of trusts do not see eye-to-eye with the trust’s trustee(s). 

Unless you are the grantor of the revocable trust, as a beneficiary your right to remove a trustee is generally limited. The first thing to remember is that the grantor specifically chose the trustee for a reason – it was someone who they trusted to act in your best interest, even if it goes contrary to what you, as the beneficiary, want

 

For engaging the services of a lawyer you may either contact a local lawyer or choose one from this forum too as per your choice.

T Kalaiselvan
Advocate, Vellore
44215 Answers
504 Consultations

5.0 on 5.0

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