Registered partnership firm gifted immovable property to trust
Raghavendra chitragar
(Querist) 25 August 2015
This query is : Resolved
1) Three brothers entered into a registered partnership business.The firm owned both movable and immovable properties.Later, the three brothers created a Trust, with themselves as the first three trustees. after the laps of time The said three brothers from the registered partnership firm gifted immovable properties to the trust is it valid gift ? what is indian law relating to this ?
2) Can we avoid second stamp duty of the registration pertaining to stamp act ?
please advise me immediately
Raghavendra chitragar
(Querist) 25 August 2015
1) Three brothers entered into a registered partnership business.The firm owned both movable and immovable properties.Later, the three brothers created a Trust, with themselves as the first three trustees. after the laps of time The said three brothers from the registered partnership firm gifted immovable properties to the trust is it valid gift ? what is indian law relating to this ?
2) Can we avoid second stamp duty of the registration pertaining to stamp act ?
please advise me immediately
R.K Nanda
(Expert) 25 August 2015
consult local lawyer.
Rajendra K Goyal
(Expert) 25 August 2015
Consult local lawyer and show him all related documents i.e. partnership deed, title deed of papers, bye laws of proposed trust etc. and discuss.
Adv. Yogesh V Nayyar
(Expert) 09 September 2015
Yes, its a valid gift to the Trust. As the three brothers who formed a partnership firm and later on formed a Trust within the family, the same would amount to Family Trust and as per provisions of Indian Trust Act, any property in the form of immovable property can be gifted to Trust. Thus, now the property which is gifted to Trust belongs to Trust and shall be entered into Schedule of Property of Trust and the said property can be utilized for Trust purposes and the proceeds thereof shall be utilized for benefit of the Trust. No single person would be entitled to make a claim to the Trust individually as owner.
