• Trust

Whether there can be two or more settlers under the trust and only one single trust is created by one trust deed for the relatives of the family and 
what’s the stamp duty in punjab on transfer of movable or immovable property to trust creates for benefit of relatives
Asked 3 years ago in Property Law
Religion: Hindu

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6 Answers

Minimum three members to be there to form a trust and yes you can club all your properties in the trust account. There is nominal fees for stamp duty and registration approximately Rs. 200/-

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

Stamp duty is state subject and varies from state to state 

 

2)there can be more than one settlor for trust 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

NRI can create a trust with respect of their properties in India and abroad 

 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

Indian Trusts Act 1882 deals with all the matters related to trusts, trustee and beneficiaries .According to section 10 of Indian Trusts Act 1882 states that “Every Person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract.”

In trust law according to Section-9 of Indian Trust Act 1886 “Every person capable of holding property may be a beneficiary. A proposed beneficiary may renounce his interest under the trust by disclaimer addressed to the trustee, or by setting up, with notice of the trust, a claim inconsistent there with. A beneficiary is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often happens in sophisticated commercial transaction structures

 

Stamp duty is levied under Indian Stamp Act, 1899 (Central Stamp Act). ... As per these entries, stamp duty on instrument of transfer (ie Trust deed) attracts a stamp duty of 2-3% of value of assets transferred under the Trust deed

Public trusts set up and declared by means of a non-testamentary instrument, apart from any state-specific legislation are required to be registered under the Registration Act, 1908

 

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

Despite all this, there is no explicit restriction on an NRI becoming a trustee in an Indian trust.

 The NRI person must be competent to enter into a contract as per Indian Contract Act, 1872. You should also note that a trust in which an NRI is a trustee can not do anything which is prohibited in India for the NRIs.

The settler or board of trustees may appoint an NRI as trustee but such an appointment may face legal hurdles later on. Therefore, if it can be avoided, it is better to appoint only resident Indian citizen as trustees (who also fulfill the requirement stated in Section 10).

Section 10 of the Indian Trusts Act 1882 states that “Every person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract.

 

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

- Yes, there can be tow or more settlers under the trust . 

- Stamp duty varied state of state 

- Further , an NRI cannot create trust in India. 

- However ,as per RBI , an NRI can be appointed as a trustee on an Indian trust under FEMA. 

Mohammed Shahzad
Advocate, Delhi
13105 Answers
195 Consultations

5.0 on 5.0

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