How to form an Educational Trust???
Nagaraja B S
(Querist) 12 January 2010
This query is : Resolved
Hi,
I would like to know, How to form an Educational Trust in Karnataka???
What is the criteria for applying??
Where to apply??
Please e-mail me at nagarajabs@gmail.com
A V Vishal
(Expert) 12 January 2010
1.Definition of Trust. Trust is defined in Section 3 of the 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. In simple words, it is a transfer of property by the owner to anther for the benefit of a third person along with or without himself or a declaration by the owner, to hold the property not for himself but for another or for himself and another.
2.Creation of Trust. A person who creates a trust is called the Author of the Trust or Settler, the person to whom the property is transferred on trust is called a Trustee and the person for whose benefits the property is transferred is called the beneficiary.
3.Deed of Trust. A trust relating to an immovable property is required to be created by a document and such document must state and contain five essential things with reasonable certainty namely;
(a) The intention on the part of the author of the trust to create a trust,
(b) The purpose of the trust,
(c) The beneficiary,
(d) The trust property and
(e) The transfer of the property to the trustee.
There cannot be trust without property.
4.Who can create a trust.Any person competent to contract can create a trust.
5.Who can be trustee. A trustee can be any person that is, an individual or a corporate body or corporate sole, capable of holding property and competent to contract.
6.Duties liabilities of trustees. The Indian Trust Act, 1882 lays down the duties, liabilities and powers of a trustee in general. Section 11 to 30 of the Act, prescribes the duties and liabilities.
a) A trust can be formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose;
b) A trust should have a document written and signed by trustees or a sole trustee;
c) A trust can be formed through a will also;
Objectives of the settlor should be clear and unambiguous;
Trust cannot be formed for the following purposes under Sec.4 of the Act:
a) Unlawful purposes;
b) Against provisions of Indian Trusts Act 1932 rules made there under;
c) If there are provisions for cheating etc. in the trust;
d) If the trust is intended to cause loss or damage to one's property
The following can form a trust under Sec.7 of the Indian Trusts Act 1882:
a) A person capable of making contract can form a trust;
b) Trust can be formed on behalf of minor with permission of Civil Court.
1. Rs.500/- if only money is contributed by the author of trust or if immovable property is convyed where in the author remains as the sole trustee.
2. Same duty as conveyance if the immovable property is conveyed and the author is not a trustee or a sole trustee.
As per Article III of table of fees under Karnataka Registration Rules 1965, fee shall be paid at 1 percent on the total of value shown by the trustee or value of movable or immovable property shown in the trust deed.
niranjan
(Expert) 12 January 2010
I would like to add that please refer Societies Registration Act. Under this Act this could be done.
B K Raghavendra Rao
(Expert) 13 January 2010
I disagree with Mr. Niranjan. Under Societies Registration Act, only Education Societies could be registered. As rightly suggested by Mr. A. V. Vishal, a trust whether educational or otherwise has to be established under Trust Act.
B K Raghavendra Rao
(Expert) 13 January 2010
A Trust has to be registered in the Sub-Registrar's Office.
