• Family Trust

(1) Can a settlor of a trust deed be a Trustee?
(2) Can a beneficiary be a trustee?
(3) Can the settlor be a beneficiary?
(4) Is it necessary for the Trust deed to be registered or an unregistered deed is adequate, more so for the purposes of IT Act? 
(5) Can the Trust deed be signed only by the settlor or should the trustees also sign the deed for registration?
Asked 5 years ago in Property Law
Religion: Hindu

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13 Answers

1. Yes. There is no legal restraint to act as Trustee which is often called Head Trustee. 

2.  No.

3. Yes.

4. Trust deed is a compulsorily  registrable document. 

5. All the parties to the Trust except the beneficiary need to sign the trust deed. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

Settlor can be trustee 

 

2) trust deed should be registered 

 

3) settlor can be a beneficiary of a trust but cannot be the single Beneficiary; otherwise, there would be no hope of having the trust in the first spot.

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

1. Yes, the Settlor of a trust can also be a trustee

2. yes, a Trustee can also be a Trust beneficiary. In fact, a majority of Trusts have a Trustee who is also a Trust beneficiary.

3. A settlor can be a beneficiary of a trust but cannot be the single Beneficiary; otherwise, there would be no hope of having the trust in the first spot.

4.  The instrument if any, by which the Trust is declared, is called the instrument of Trust or Trust Deed. Section 5 of the Indian Trusts Act provides that a private Trust in relation to an immovable property must be created by a non-testamentary instrument in writing, signed by the author of the trust or the trustee. The Section 17 of the Indian Registration Act 1908 deals with the documents that are compulsory to be registered. As per section 17, in case a Trust is declared by a non-testamentary instrument, the registration of a trust is necessary. This registration would still be required, even if the instrument declaring the trust is exempt from registration under the Indian Registration Act.

5. A private trust in India is governed under the Indian Trusts Act, 1882 ("Trusts Act") and may be created by a trust deed. There are three parties to a trust - (i) the settlor, being the person who creates the trust; (ii) the beneficiary, for whose benefit the trust has been created and (iii) the trustee, who is appointed by the settlor to administer the trust.

 

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

1. Yes

2. Yes he can but not sole beneficiary

3. Yes but no sole

4. Yes 

5. Some trust are Compulsorily registrable and some are not. 

6. All should sign it

 

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

1. An Un-Registered Trust, is legally infructuous & invalid for all statutory purposes, which includes all futuristic Court disputes.

2. Trust has to be duly registered with the regional Charity Commissioners office.  Minimum Two trustees signatories are required, who may be beneficiaries. Other Trustees may join in later as required.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

I answer your questions in affirmative provided all clauses are embodied in Trust Deed.

The Trust Deed of a Trust is an Act itself for procedures and compliance of day to day affairs of the Trust. 

Please read carefully the Trust Deed of your trust to find out all your questions satisfactorily. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Settlor of a trust can also be a trustee.

Yes, Trustee can also be a Beneficiary of a Trust.

Yes, settlor can be a beneficiary of a trust but cannot be the single Beneficiary.

Trust declared by a non-testamentary instrument, the registration of a trust is necessary.

Settlor alone and/or trustees can sign deed

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

1. Yes 

2. No

3. No

4. Yes it is mandatory to register a trust deed. 

5. Trustees must sign the trust deed for registration.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

(1) Yes,a settlor of a trust deed be a Trustee.

(2) Yes, a beneficiary be a trustee.

(3) Yes , a settlor can be a beneficiary of a trust but cannot be the single Beneficiary; 

(4) No, registration of the Trust deed is not mandatory . 

(5) Both can sign

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

1. Yes

2. Yes

3. No

4. It is to be registered. 

5. Trustee should also sign

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

settlor is the person who creates and funds the trust. The trustee is appointed by the settlor to administer the trust. The same person can perform both of these jobs or different people can act as settlor and trustee. Trustee can also be a Trust beneficiary.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Yes

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

Dear Sir/Madam,

You are suggested that the settler can become the trustee but a beneficiary can't. Also, the settler can be beneficiary of the trust. For safety and to avoid future complications deed must be registered and the should be signed by all the concerned members forming the trust. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

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