Private trust registration

Respected Abhijeet Jain,

In certain situations, trust registration is required, while in others it is not.

The instrument of Trust or Trust Deed is the document that declares the Trust, if one exists. A private Trust with regard to immovable property should be constituted by a non-testamentary document in paper, signed by the author of the trust or the trustees, according to Section 5 of the Indian Trusts Act. The Indian Registration Act of 1908, Section 17, addresses with the documents that must be registered. Thus, a trust with movable property does not mandatorily have to register itself.

Regards,

Anaita Vas

Dear Abhineet,

According to the Indian Trusts Act-

To establish a private trust for an immovable property, you'll need a non-testamentary instrument in writing. The non-testamentary instrument must be signed and registered by the trust author or trustee. If the non-testamentary instrument is created by a will, registration is not required.

Similarly in case of moveable property trust can be created in the same way that an immovable property trust is created, or by transferring ownership of the property to the trustee. As a result, there are no registration requirements.

Regards,

Aryan Raj 

Registration always brings the law into the operations and is more effective in the implementation of the objectives and easy to get a remedy in case of breach of the objectives.  The rights are well preserved in registered trust with effective controls through Registrar.

It is better to get the trust registered.