Deed of Private Trust
[Private Trust for Management of Property]
This Deed of Private Trust is made and entered into at____, this_____ day of______, 20____, between ABC, and adult Indian, aged about______ years, occ:-_________, resident of__________________________ (hereinafter for the sake of brevity referred to as the ‘Settlor of one Part’)
DEF, an adult Indian, aged about_____ years, occ:-_________, resident of_______________, GHI, an adult Indian, aged about_______ years, occ:-________, resident of______________________ and JKL, an adult Indian, aged about_____ years, occ:-__________, resident of___________________ (hereinafter for the sake of brevity, DEF, GHI and JKL to be collectively referred to as the ‘Trustees of other Part’).
WHEREAS, the ‘Settlor of one Part’ was formerly a Stock broker and he owns and possesses a sizable property, both movable and immovable, which is described in the Schedule appended hereto. (hereinafter for the sake of brevity referred to as the ‘Said Trust Property’)
AND WHEREAS, the ‘Settlor of one Part’ due to old age and a host of old age related ailments, has retired from the stock broker business and lives a retired life with his wife MNO and son PQR at the above mentioned address.
AND WHEREAS, MNO, the wife of ‘Settlor of one Part’ is afflicted with ailments and other geriatric diseases and as such she for most part, is practically confined to bed. On the other hand, PQR, the son of ‘Settlor of one Part’, though married and having a son, suffers from severe paralytic condition and as such he needs constant medical attention and care. Due to the aforementioned medical conditions, both MNO and PQR are unable to perform their daily chores and are dependent upon their attendants.
AND WHEREAS, the ‘Settlor of one Part’ is at an advanced age and he finds it increasingly difficult to manage the ‘Said Trust Property’ for want of assistance from either MNO and PQR. On the other hand, the wife of PQR has obtained a Divorce decree from the court and she is currently living with her parents at________ with STU, the minor son of PQR and grandson of ‘Settlor of one Part’. Hence, the ‘Settlor of one Part’ desires to create a private trust for the preservation and management of the ‘Said Trust Property’.
AND WHEREAS, DEF, GHI & JKL (the ‘Trustees of other Part’) are the former employees and colleagues of the ‘Settlor of one Part’ and he has full confidence and trust in their integrity and managerial skills; hence, he has appointed them as the Trustees for the management and preservation of the ‘Said Trust Property’ on the following terms and conditions.
NOW THIS DEED OF PRIVATE TRUST WITNESSETH AS UNDER:
1] That the ‘Settlor of one Part’ hereby grants, conveys and transfers the ‘Said Trust Property’ to the ‘Trustees of other Part’ and they shall hold and use the same for the optimum management and preservation thereof, in the interest of MNO, PQR and STU and the ‘Trustees of other Part’ on their part, do hereby covenant with the former party to discharge their obligations and trust in utmost good faith in accordance with these presents.
2] The value of the ‘Said Property’ is roughly quantified at Rs______/- (Rs_______/-only).
3] The ‘Trustees of other Part’ shall, during the lifetime of ‘Settlor of one Part’, abide by his general instructions & directions in using, managing and preserving the ‘Said Trust Property’ and after the latter’s death shall abide by the terms & conditions laid down herein.
4] The ‘Trustees of other Part’ shall in the normal course exercise and discharge the following powers and duties:-
(a) To pay the rates, land revenue, rents and taxes payable on the immovable property described in the Schedule appended below and to appear before the Taxation and Revenue Authorities, local bodies etc.;
(b) To defend the ‘Said Trust Property’ in any suit, petition, application, appeal or like proceedings instituted by any inimical party including any government, semi-government authority or local bodies. Furthermore, to institute any suit, petition, application, appeal, revision or like proceedings against any third party, whatsoever, for protecting and safeguarding the ‘Said Trust Property’ from any adverse claim, trespass or usurpation;
(c) To sign, execute and deliver all such applications, petitions and papers as are necessary to give effect to the power contained in the preceding clause and to appoint, engage and retain any suitable Advocate, Pleader or Attorney, to institute and/or defend any such proceedings as are described hereinabove and to pay and incur the required expenditure on the court-fees, counsel fees and other miscellaneous matters;
(d) To open a bank account/s in such bank/s as the ‘Trustees of other Part’ deem fit and proper, which shall be operated jointly by any two of the trustees;
(e) To sign, endorse, negotiate and transfer any Negotiable Instrument including cheques, promissory notes or bills of exchange for more effective discharge of the trust duties;
(f) To recruit, hire, engage and appoint any fit and competent person to perform the duties of servants, clerks, agents and managers vis-à-vis the ‘Said Trust Property’ and to pay their salaries, wages and other emoluments as are reasonably required to be paid under any law for the time being in force;
(g) To sell any shares, stocks, debentures, government bonds or other securities, subject to ceiling of Rs.________/- (Rs_______________/- only) at any time in future, when the exceptional circumstances would warrant the sale thereof for the effective management and preservation of the ‘Said Trust Property’. For removal of doubt, it is clarified that ceiling value would be measured in terms of the latest market capitalization of securities and a certificate issued by a listed Stock Broker or other accredited Investment Consultant would be a sufficient proof of their market worth. It is further clarified that the decision to sell the securities in exceptional circumstances would as far as possible be a unanimous decision and when unanimity cannot be reached, a decision by majority vote would be taken for resolving the deadlock. In such event, the Chairperson presiding over Trust meeting would have a second/casting vote, when the votes are evenly split;
(h) The ‘Trustees of other Part’ shall function from______________ and they shall ordinarily hold the trust meetings at this place or at such other place/s as they mutually think fit. At such trust meetings, members who are present shall appoint one of them as the Chairperson to preside over the meetings. Such meetings shall have a quorum of two members and when the quorum is not fulfilled, the meeting shall automatically stand adjourned to a date immediately following the next fortnight or such other date as the members present decide amongst themselves;
(i) To do such and further other acts, deeds and things as future circumstances and contingencies may reasonably require for better preservation and management of the ‘Said Trust Property’.
5] The ‘Trustees of other Part’ shall function as trustees during their lifetime and if a vacancy occurs in the office of any of the trustees, either by death, incapacity, illness or resignation, it shall be filled within a period of________ months, by the remaining trustees by appointing a competent and proper person to replace the outgoing trustee/s. It is clarified that during the lifetime of the ‘Settlor of one Part’, due deference shall be had to the wishes expressed by him in making any appointment of the new trustee. After the death of ‘Settlor of one Part’, the wishes of his wife, MNO shall be taken into consideration in making any appointment of the new trustee, if the former is in position to do so.
6] The ‘Trustees of other Part’ shall cease to hold their respective offices when they become of unsound mind or are rendered insolvent. Moreover, any major misdemeanor, gross dereliction of duty or moral turpitude, shall be a ground for the removal of trustees and the decision of the competent Court/authority shall be final in this regard.
7] Any of the trustees herein, or any of the trustees as may be appointed hereinafter, may resign his/her office by a letter under his/her hand addressed to the other trustees and left at the Trust Office at______________ and upon acceptance of the said resignation the resigning trustee shall be deemed to have vacated his/her office.
8] The said trust is primarily created for the benefit of MNO, PQR and STU and the ‘Trustees of other Part’ shall hold, use and utilise the ‘Said Trust Property’ for their lawful needs, requirements and benefits. The ‘Settlor of one Part’ agrees to do all such acts, deeds and things and to sign, execute and deliver all such documents, papers and writings as are necessary to effectively convey the ‘Said Trust Property’ unto the ‘Trustees of other Part’.
9] As this Trust is created for the benefit of MNO, PQR and STU, it will subsist only till such time that either of them survive or till STU attains the age of 25 years, whichever is later and on the happening of such event the said Trust shall cease and the ‘Said Trust Property’ shall vest either in STU, or if he predeceases MNO and PQR, then in other legal heirs of the ‘Settlor of one Part’.
10] The ‘Settlor of one Part’ expressly reserves unto himself the power to alter, revoke or modify at any time in future, the trust hereby created, but such revocation, alteration or modification shall not affect any act already done in good faith by the ‘Trustees of other Part’ or their successor trustees in execution of the said Trust.
The Schedule of Property of the above Private Trust
|Description of the Property
IN WITNESS WHEREOF, both the parties hereto have set and subscribed their respective hands to this writing the day, month and year first hereinabove written.
Signed, Sealed and Delivered by ABC,
the withinnamed ‘Settlor of one Part’
in the presence of Witness:-
(Settlor of one Part)
Signed, Sealed and Delivered by
DEF, GHI and JKL, the withinnamed
‘Trustees of other Part’ in the presence of
(Trustees of other Part)