Model Trust Deed for a
Private Specific Trust[CD1]
MODEL
TRUST DEED FOR A PRIVATE SPECIFIC TRUST DEED OF TRUST OF ______________
TRUST
THIS
DEED OF TRUST made at _______ this day of _______ 2000 BETWEEN
_________________ residing at ____________ __________ hereinafter called
"the Settlor" (which expression shall unless it is
repugnant
to the context or meaning thereof be deemed to include his heirs, executors
and/or administrators) of the One Part AND (1) -------------------- residing at
_____________ AND (2) ----------------- residing at ________________,
hereinafter called "the Trustees" (which expression shall unless it
be repugnant to the context or meaning thereof be deemed to include the
survivors of survivor of them and the heirs, executors and administrators of
the last survivor and the trustees or trustee for the time being of these
presents, their, his or her assigns) of the Other Part;
i.
WHEREAS the Settlor is
seized and absolutely possessed, inter alia, of an amount of Rs._________/-
(Rupees ___________________ only) in cash;
ii.
WHEREAS out of natural love
and affection which the Settlor bears towards the beneficiaries (i)
___________________ and (ii) _________________ who are the (relationship) of
the Settlor, the Settlor is desirous of settling a sum of Rs._____/- (Rupees
_____________ only) upon and subject to the trusts, powers, provisions,
agreements and declarations hereinafter declared and contained of and
concerning the same and the Settlor has requested the Trustees to act as the
Trustees thereof, which the Trustees have consented to do (as is testified by
their being parties to and executing this Deed);
AND
WHEREAS in pursuance of the said desire the Settlor has, prior to the execution
hereof, handed over cash of Rs.5,000/- (Rupees five thousand) and a cheque for
Rs. _________/- (Rupees ________________ only) to the Trustees and the Trustees
have accepted and taken possession of the same and they shall hold the said
amount upon the Trusts and with and subject to the powers and provisions
hereinafter declared and contained;
NOW
THIS DEED OF TRUST WITNESSETH as follows:-
1.
The Settlor
_________________________has conveyed, transferred and assigned to the Trustees
the said amount of Rs. 5,000/- (Rupees five thousand only) in cash and Rs.
_________/- (Rupees ______________________ only) by cheque.
2.
The Trust shall be known as
"..................." but it may hold assets or carry on business in
any suitable name.
3.
The Trustees hereby declare
that they the Trustees shall hold and stand possessed of the said property
which is referred to as "the Trust property" which expression shall
also include cash and any other property and investments of any kind whatsoever
into which the same or any part thereof might be converted, invested or varied
from time to time or such as may be acquired by the Trustees or come to their
hands by virtue of these presents or by operation of law or otherwise howsoever
in relation to these presents, upon the Trusts and with and subject to the
powers, provisions, agreements and declarations hereinafter declared and
contained concerning the same.
4.
The Trustees shall hold and
stand possessed of the Trust property upon the following trusts that is to
say:-
a.
to manage the trust premises
or Trust Fund and collect and receive the interest, dividend and other income
thereof;
b.
to pay and discharge out of
the income of the Trust Fund all costs, charges and expenses for collecting and
receiving the income of the Trust Fund and all other assets, charges, expenses
and outgoings of and incidental to the Trusts created by these presents and
administration thereof;
c.
to close the accounts of the
Trust on the 31st day of March of every year and pay to or accumulate or spend
the net income of the Trust among the beneficiaries in the following
properties:-
i.
%
ii.
%
1. If
either of the beneficiaries dies before the determination of this Trust his or
her share and interest in the Trust shall devolve upon the survivor and in the
event of the death of the survivor before the determination of the Trust it
shall devolve upon his legal heirs.
a.
The income of the Trust
shall be credited to the respective accounts of the beneficiaries.
b.
Any amount withdrawn by the
beneficiaries or on their behalf shall be debited to the respective accounts of
the beneficiaries.
c.
The Trustees shall also be
entitled to spend any part of the corpus or of the amounts credited to the
accounts of the beneficiaries for their maintenance, education and medical
relief or for any other benefit of the beneficiary concerned and such amounts
shall be debited to the respective accounts of the beneficiaries.
d.
The Trust shall be
determined when the younger of the beneficiaries attains the age of ......
years or on such earlier date as the Trustees may in their absolute power
decide. On the determination of the Trust the corpus of the Trust property
shall be divided among the beneficiaries existing at the time according to
their shares and if there is no existing beneficiary then to the legal heirs of
the beneficiary who dies last.
1.
It is hereby agreed and
declared that the Trustees herein appointed or to be appointed in future as
hereinafter provided shall manage the trust property and for this purpose they
shall have full power at all times to sell, convert, transfer or alienate any
one or more of the Trust properties and to convert the proceeds thereof in other
properties, securities or investments as they may deem fit.
2.
The Trustees may receive and
accept any donations, gifts or bequests from the Settlor or any other person or
persons for the purpose of the Trust. The Trustees may also accept deposits or
take loans from any person including the Settlor on such terms and conditions
as they may deem fit. Without affecting the generality of the powers,
provisions and authorities vested in the Trustees under these presents the
Trustees' shall have in addition thereto and not in substitution thereof, the
following powers and authorities and they shall be entitled to execute all
acts, documents and things necessary, ancilliary or incidental thereto, that is
to say :-
a.
To open banking accounts of
the Trust in any bank or banks of repute in the name of the Trust or in the
name of any Trustee or Trustees and such bank account may be operated by any
one of the Trustees individually.
b.
To borrow monies or raise
loans and funds required for any purpose, power or provision either directly or
indirectly concerned with the objects of this Trust or incidental to these
presents from any bank or other person or concern.
c.
To draw, make, accept,
endorse, discount, execute or issue promissory notes, bills of exchange and
other negotiable instruments.
d.
To purchase, take on lease
or sub-lease, leave and licence basis, co-operative schemes or any other
arrangements or in exchange or hire movable or immovable property including
residential flats or commercial units and any rights, benefits or privileges
which the trustees may think necessary or convenient.
e.
To construct, develop,
maintain, erect, fabricate and alter any building, structures, industrial
estates, factories and storage tanks or works of any nature whatsoever
necessary or convenient or as the Trustees may think fit.
f.
To sell, improve, manage,
develop, exchange, lease, mortgage, pledge, hypothecate, dispose of or turn to
account and deal with all or any part of the Trust Fund and premises hereby
settled or any part or parts thereof.
g.
To organise agencies or
officers or to make any other arrangements necessary for conducting and
managing the Trust and to appoint such agents and representatives on their
behalf as the Trustees may think fit.
h.
To purchase on ownership or
take on rent or compensation residential flats, business premises, industrial
sheds or factory premises, godowns or open plots of land and let out the same
on leave and licence or compensation or warehousing charges or storage charges.
i.
To carry on any business or
businesses including that of import or export of any commodities, import and
export and banking or enter into partnership or joint ventures or other
arrangements with any other person, firm, body corporate, society, federation,
association of individuals or otherwise howsoever for carrying on any business
or businesses, industries or commercial activities for and on behalf of the
Trust and to appoint any one or more Trustees to be partners, representatives
or nominees or nominee for and on behalf of the Trust to carry out or implement
any such arrangements.
j.
The Trustes shall be
entitled to determine whether any money or property shall for the purpose of
this Trust be considered as capital or income and whether expenses, outgoings
or loans ought to be paid or borne out of the corpus or income and any such
determination of the Trustees shall be conclusive.
k.
The Trustees may deposit any
documents of title or any other papers or documents or certificates held by
them relating to any movable or immovable property or relating to the Trust
under these presents with any bank or bankers or any other person, firm, or
company whatsoever for safe custody and may pay any such charges payable in
respect of such deposits.
l.
The Trustees instead of
acting personally, may employ and pay any agents, person or representative
including any bank or insurance company to transact any business or to do any
act whatsoever in relation to the Trusts of these presents including the
receipt and payment of moneys without being liable for loss and shall be
entitled to be allowed and be paid all charges and expenses incurred hereby.
m.
The Trustees may from time
to time appoint on such terms with or without remuneration as they may
determine any immovable or movable property subject to the provisions of this
Trust and the Trustees shall have powers to pay them salary, wages, emoluments,
fees and remuneration.
n.
In the event of the Trustees
doing any business or starting an industry or undertaking either themselves or
in partnership with others or as joint venture and their incurring any losses
thereby, they will be entitled to be reimbursed out of the Trust all losses
incurred as well as all costs, charges and expenses incurred by them in
starting or defending any proceedings.
o.
The Trustees shall have the
power to make investments in movable or immovable property, to give loans on
interest or otherwise to purchase shares, debentures and other securities,
Government bonds etc and to make any other investments as the Trustees in their
sole discretion may deem suitable.
1.
In the event of the Trustees
purchasing an immovable property or properties out of moneys belonging to the
Trust it shall be lawful for the Trustees to repair, pull down, or rebuild them
or construct any other buildings or structures out of the corpus of the Trust
Fund and to give such properties on lease or tenancy or leave and licence or in
any other manner on such terms at such rent or rents and upon such conditions
as the Trustees may think fit and to make allowance with tenants and others and
the Trustees shall also have the power to condone breaches of covenants and to
accept surrender of lease or tenancy etc. and generally shall have all powers
of management of such immovable property or properties as absolute owners
without being responsible for loss or damage that may happen thereby and it
shall be lawful for the Trustees at any time to sell such immovable properties
or property or part or parts thereof or easements rights or privileges exercised
or enjoyed in, over, for upon or under such immovable property or properties
and upon any such exchange to give or receive moneys for equality or exchange.
2.
The Trustees may make any
such sale as aforesaid either by public auction or private contract and may
make or agree to any stipulations or provisions as to evidence to title or
commencement of title or otherwise to any conditions of sale or contract for
sale or exchange and may buy in at any sale by auction and rescind or carry any
contract and enter into any new contract for any of the purposes aforesaid
without being responsible for any loss. The Trustees may execute assurances and
give effectual discharge for any such sale or exchange which they may think
proper.
3.
In the event of any
difference between the Trustees concerning the affairs of the Trust, the
decision of the majority of the Trustees shall prevail.
4.
The Trust being established
hereby shall be irrevocable and no part of the Trust Fund shall in any
circumstances whatsoever be paid or lent to or be applied for the benefit of
the Settlor. If the Trust fails or is held to be invalid for any reasons, there
shall be no resulting trust in favour of the Settlor but the assets of the
Trust shall be divided amongst the beneficiaries in the proportion mentioned in
clause (4) above.
5.
Any Trustee for the time
being hereof may at any time retire from the Trust on giving not less than one
month's notice in writing of his intention to do so to the other Trustees for
the time being hereof and upon expiry of such notice the Trustee giving such
notice shall cease to be a Trustee of these presents.
6.
Every one of the Trustees
for himself doth hereby agree that in the event of his vacation of the office
of the Trustee, he shall do all necessary acts, deeds and things for
effectively transferring over unto the name/names of the additional Trustees or
Trustee the Trust Fund and all costs attending such transfer shall be borne out
of the income of the Trust Funds.
7.
It shall be always lawful
for the Trustees to appoint any additional Trustees or Trustee of these
presents and if the Trustees hereby appointed or any of them or any future
Trustee or Trustees hereof shall die or remain abroad for more than 2 years
continuously or become bankrupt or insolvent or desire to be discharged or
refuse or become unfit or incapable to act or if the Trustees shall be desirous
of appointing any additional Trustees or Trustee along with them then in and
every such case it shall be lawful for the Trustees or the surviving or
continuing Trustees or Trustee for the time being and if there be no surviving
or continuing Trustee or the refusing or retiring Trustees or Trustee if
unwilling to act and failing them then the heirs, executors or administrators
of the last surviving or continuing Trustee/Trustees becoming unfit or
incapable to act to appoint a new Trustee or Trustees and upon any such
appointment the number of Trustees of these presents shall at no time be less
than two nor more than seven and upon every such appointment the Trust property
and the Trust Fund thereof shall (if and so far as the nature thereof or the
other circumstances so require or admit) be transferred so that the same may be
vested in the Trustees or Trustee for the time being and every Trustee so
appointed may as well before or after such transfer of the Trust property or
funds act and/or assist in the execution of the Trusts and powers of these
presents as fully and effectively as if he had been hereby originally
constituted as a Trustee hereof. Acceptance in writing by the substituted or
additional Trustee or Trustees shall be sufficient to vest the Trust Funds in
such Trustees or Trustee.
8.
The Trustee will from time
to time decide questions arising with respect to the administration of the
Trust and may keep a record by way of minutes of work done and resolutions
arrived at by them at their meetings convened or by circular.
9.
In case any Trustee whether
present or future, happens to be a professional person he will be entitled to
payment of professional fees for work done by him or by a firm in which he is a
partner and he shall not be liable to account for any share of profits received
by him from the firm.
10.
And it is hereby further
agreed and declared that the Trustees for the time being of these presents
shall be respectively chargeable only for such Trust Funds and the income
including moneys, stocks, funds, shares and securities as they shall
respectively actually receive notwithstanding their responsibility and shall be
answerable and accountable only for their own acts, receipts, neglects and/or
defaults and not for those of the other or others of them nor any banker,
broker, auctioneer or agents or any other person or persons into whose hands
any Trust Funds or Trust income may be deposited or come nor for lending or any
security with less than marketable title nor for the insufficiency or
deficiency of any stocks, funds, shares, securities nor any other loss unless
the same shall happen through their own wilful defaults or dishonesty
respectively and also that the Trustees or Trustee for the time being of these
presents may reimburse themselves or himself and pay and discharge out of the
Trust Funds and property all expenses incurred in or about the execution of the
Trust or powers of these presents.
11.
The Trustees shall have
power from time to time to make rules and bye-laws relating to their meetings
and conduct of the business and otherwise as to the management of the Trust
Fund and from time to time carry out, alter or add to such rules or bye-laws
provided however that such rules or bye-laws are not inconsistent with the
terms of these presents.
IN
WITNESS WHEREOF the parties hereto have hereunto set and subscribed their
respective hands the day and year first hereinabove written.
SIGNED
AND DELIVERED by the
Within
named SETTLOR)
Mr.___________
in
the presence of
SIGNED
AND DELIVERED by the
Within
named TRUSTEES
(1)___________________
and
(2)
in
the presence of
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