Matters related to indian trust act
Suraj Vishwakarma
(Querist) 22 December 2017
This query is : Resolved
Hello Experts,
I own Family trust in relation to immovable property, which so far i don't know weather it is registered or unregistered because it is just type on Rs.100/- stamped paper in the year 1988, where my Grandfather & Father is trustee and rest 3 brothers of my father are beneficiary. Out of which 2 brother are died leaving behind their hires.
Know i want to remove my grandfather name due to his old age and with his permission and add my self into the trustee. Please let me know the procedure if it is sufficient to remove him in the same way by making Agreement upon stamp paper or i have to take permission from some authority.
Please also let me know the Procedure if i can add or remove the name of beneficiary, thus removing the name of beneficiary will violet the right of Legal Hires.
Please give your valuable suggestion upon it.
H.M.Patnaik
(Expert) 23 December 2017
The Querist seems to be an Advocate as named in the profile photo.If this is correct,it should be first ascertained whether the Trust Deed is at all registered.In case it is a Regd. Deed, substitution of Trustee is possible with consent of the existing trustees if not specifically debarred as per the terms of Trust Deed.
However,if the document in question is yet to be registered, a fresh deed may be prepared incorporating the desired persons as Trustee(s).
P. Venu
(Expert) 23 December 2017
Have you discussed the issue with the other trustees?
kavksatyanarayana
(Expert) 23 December 2017
As per your query the Trust deed might have not be registered. Fortunately if is registered then make an amendment to the trust deed to be executed by the authors/executors (who singed in original deed). Otherwise a fresh Trust Deed be executed by mutual consent of other trustees/beneficiaries.
Dr J C Vashista
(Expert) 24 December 2017
An unregistered "TRUST" is non-est in law, therefore, obviously it has to be registered.
Substitute your name & address after obtaining consent of other trustees.
Suraj Vishwakarma
(Querist) 24 December 2017
Yes Patnaik ji you are right but i have no experience on this act as i am junior.
P. Venu ji i have already took permission from existing trustee.
Kavksatyanarayana ji it is unregistered trust as i have not got any Registration number and also like to point out that based on that trust deed existing trustees have bought property. so please let me know shall i just make agreement by removing existing one trustee and adding new trustee or just simply draft new family trust agreement.
I also like to know whether Registration of family trust is compulsory or it is optional as i enquired charity commissioner have no jurisdiction to entertain change report as i got advise i can do it by passing resolution in minutes.
I also request that please let me know the procedure to add or remove name of beneficiary from existing family trust.
J K Agrawal
(Expert) 25 December 2017
I respectfully disagree with all the experts.
1 Registration of Trust - Which type of registration required? only public trust required registration. If the trust involves immovable property transfer from person to trust, its registration required under Registration Act just like sale deed or gift deed. So do not bother registration, if your intention is not to transfer immovable property to TRUST only. An unregistered private trust is good in law but its property having no clear title in trust is unsafe.
2- Procedure to change trustee- Pl refer to Indian Trust Act as you are an advocate. However - it is governed by trust deed only. if not so provided in trust deed the consent of 'beneficiary. is must and necessary to remove a trustee. A trustee is for life time (unless so expressed) and he can not withdraw after once accepting trusteeship.
The beneficiary can never be removed if not permitted by original trust deed. It governed by trust deed only. it may be defunct but once a beneficiary defined, it is final up to life time of trust.
The issue of consent of other trustee also not fully agreed by me. No need to take consent of all trustees. It firstly governed by trust deed itself and secondly as per Indian Trust Act.
Being an advocate it is always advised to gain first hand knowledge instead of taking advise at very first. You will get so many problems solved. After that if you are confused, you should some specific questions stating about your study and opinion so that other experts can check and suggest.
Thanks
Suraj Vishwakarma
(Querist) 26 December 2017
Completely agree with J K Agrawal. I thank you to give your suggestion as advised to gain knowledge at very first hand. I would like to share with you that i have gone through the Indian Trust Act where it's says Registration of private trust is optional but if it have immovable property than Registration is compulsory.
so my doubt was it is compulsory to have Register before purchasing of property or after.
so far the removal of beneficiary is concerned it is mentioned that civil court have power to do so. but my query was if the unregistered trust have no legal existence so can i do with just forming an agreement or i have to take permission from civil court.
