Legal Question in Investment Law in India

I wish to create a family trust contributing Rs.10lakhs around corpus and intend to distribute the periodical income thereon to my brothers and any other such proposition. No profit motive for the trust but only to arrange the flow of help to them without much of my interference. the trust may also accept further contributions. the trust continuation or otherwise will solely rest with us.

Please advise the application of law, draft trust deed and any tax compliances and the need and authority for registration and the procedure therefore. Please advise


Asked on 3/05/13, 10:46 pm

3 Answers from Attorneys
Setu Niket Curare Legal

A trust is created by a trust deed, which will incorporate all the clauses as to receipt of money and investment and distribution of the same to beneficiaries, subsequently a bank account has to be opened for the same, the trustees appointed, it will be governed by tax laws currently applicable.

Registration would depend on your state, if it has any state specific legislation or else with the local sub-registrar.

Feel free to contact for further assistance.

Kind Regards

Setu Niket

Advocate

Delhi High Court

+91-9873109672

www.freelegaladvicedelhi.in

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Answered on 3/05/13, 11:26 pm
Jayesh Desai Jayesh Desai

Indian Trust Act applies. Trust cannot be in perpetuity as it will be contrary to law, as it is a family trust, you will also have to set a date for dissolution of trust.

Consult a lawyer, in your local area, who can guide you appropriately in the matter.

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Answered on 3/15/13, 3:42 am


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