PRIVATE FAMILY TRUST DEED
(A deed by which a Settlor puts property in the hands of Trustees to hold for the Beneficiaries named in it)
BETWEEN
__________, __________ __________, residing at __________
(the "Settlor", which expression includes the Settlor's heirs and legal representatives, of the ONE PART)
AND
(together the "Trustees", which expression includes the Trustees for the time being of this Trust, of the OTHER PART)
RECITALS
A. The Settlor wishes to create a private trust named __________ (the "Trust") for the persons named in Schedule 1 (the "Beneficiaries").
B. The Settlor owns the property described in Schedule 2, free of any charge or claim, and wishes to hand it to the Trustees to hold on the terms of this Deed.
C. The Trustees have agreed to act as trustees on these terms.
OPERATIVE PART
1. Creation of the Trust
1.1 The Settlor declares and creates the Trust, and hands the property described in Schedule 2 to the Trustees, who accept it, to hold on trust for the Beneficiaries on the terms of this Deed.
1.2 This is a private family trust. It is not a charity and it is not for the public.
2. The Trust Property
2.2 The Settlor or any other person may add more property to the Trust with the Trustees' agreement, by a written note signed by the Trustees and kept with this Deed. All property held by the Trustees under this Deed from time to time, with its income, is the "Trust Property".
2.3 The Trustees will keep the Trust Property separate from their own property.
3. Purpose and benefit
4. Powers of the Trustees
4.2 The Trustees may open and run a bank account and apply for a PAN in the name of the Trust, and may pay the lawful costs and expenses of the Trust from the Trust Property.
5. Duties of the Trustees
5.1 The Trustees shall act honestly and in good faith for the Beneficiaries, shall not use the Trust Property for their own benefit except as this Deed allows, and shall keep proper accounts of the Trust Property.
5.2 An adult Beneficiary may ask the Trustees for a copy of the accounts, and the Trustees shall give it within a reasonable time.
6. Change of Trustees
6.1 A Trustee may retire by written notice to the Settlor or, after the Settlor's death, to the other Trustees. If a Trustee retires, dies or can no longer act, the Settlor while living, and otherwise the remaining Trustees, shall appoint a new Trustee in writing, and the Trust Property shall be put in the names of the Trustees for the time being.
7. Changing or taking back the Trust
8. When the Trust ends
9. Stamping, registration, tax and costs
9.1 This Deed will be stamped as the law requires. If the Trust Property includes land or a building, the Settlor and the Trustees will ask the Sub-Registrar whether registration is needed, and will do what is advised, before treating that property as held by the Trustees.
9.2 This Deed does not state or decide any tax position of the Settlor, the Trustees, the Beneficiaries or the Trust. Each should confirm it with a chartered accountant.
9.3 The costs of making this Deed, and any stamp duty or registration charge on it, are borne by the Settlor unless the Settlor and the Trustees agree otherwise in writing.
10. Governing law
10.1 This Deed is governed by the laws of India, including the Indian Trusts Act, 1882. The courts where the Settlor lives have jurisdiction over any dispute about it.
SCHEDULE 1: THE BENEFICIARIES
SCHEDULE 2: THE FIRST TRUST PROPERTY
PERSONAL DATA NOTICE
This notice is given under the Digital Personal Data Protection Act, 2023.
The purpose of collecting personal data in this Deed is to identify the Settlor, the Trustees and the Beneficiaries, record the Trust and the property put into it, and support its stamping, any registration, and the opening of a bank account and PAN for the Trust.
If the matter does not proceed, the personal data will be retained for 90 days and then erased. If the matter proceeds, the record will be retained for the matter plus 12 months, except where a statute requires a longer named retention period.
Data minimisation: this document does not collect a full Aadhaar number, an Aadhaar-card copy, a password or bank credentials.
SIGNATURES
SIGNED by the Settlor
_______________________________
__________ — SETTLOR
SIGNED by the first Trustee, accepting the Trust
_______________________________
SIGNED by the second Trustee, accepting the Trust
_______________________________
WITNESSES, each of whom has seen the parties sign this Deed. No witness is a party to it.
Witness 1
Signature: _______________________________
Witness 2
Signature: _______________________________