Private Trust
Jaydeep Kurup
(Querist) 14 March 2009
This query is : Resolved
Whether a Private Trust can be settlor for another Private Trust.
Here a trust has been bequeathed with some property which it wants to distribute to various beneficiaries by forming seperate trusts. So the Trust itself needs to be a settlor for forming other trusts. Can this be possible??
Pls advise.
PALNITKAR V.V.
(Expert) 14 March 2009
It is possible. However, certain procedure has to be followed after passing necessary resolution. Normally, the relevant Trust Acts contain condition that permission from Charity Commissioner should be taken before finalisation of the settlment.
Jaydeep Kurup
(Querist) 14 March 2009
Whether permission would be requried from a chairy commissioner in case of a private trust? I doubt.
As per the Indian Trust Act, only a person competent to contract can create a trust. Whether trust can contract. Trustee normally has this power.
PALNITKAR V.V.
(Expert) 14 March 2009
I am also not sure about the laws applicable to your trust.
n.k.sarin
(Expert) 15 March 2009
In my opinion a trust cannot creat another trust and can not give the property to other trust.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 20 March 2009
For creating a private trust there is no need of any permission from charity commissioner anywhere in INDIA.
Regarding creating of string of private trusts for others the simpler way will be that you create direct trusts. You can creat any number of trusts
