Model Format of the Trust Deed

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Model Format of the Trust Deed

 

 

DEED OF TRUST

 This   DEED OF DECLARATION OF TRUST    executed on    this   DD-MMM-YYYY at Mumbai by < Name of the Author>

hereinafter called as AUTHOR OF THE TRUST which expression shall wherever the context so permits mean and include its successors –in-office of the ONE PART and;

 

WHEREAS the AUTHOR OF THE TRUST decided to create and establish a Trust to <insert a sentence about the purpose of the trust> of the community at large with the objects and constitution as hereinafter set forth;

 

WHEREAS the said objects in view, the AUTHOR OF TRUST have decided to endow the said TRUST a nucleus of Rs. XXX/- (Rupees <<Amount In words>> only) in cash; and

 

WHEREAS it is necessary and desirable to declare and constitute the said Trust and to record the objects and constitution of the said Trust.

NOW THIS DEED OF DECLARTION OF TRUST WITNESSETH AS FOLLOWS;

1. TRUSTEES mean and include the Board of Trustees as described in these presents, and these Trustees, as appointed, nominated or selected by the remaining members of the Board of Trust whenever any vacancy arises.

 

2. CREATION OF THE TRUST:

In pursuance of the intention, the AUTHOR OF TRUST has settled the sum of Rs. XXX by cash into and in favour of the Trustees herein to be held by them for and on behalf of the Trust hereby created and known as “NAME OF THE BANK” the receipt of which sum of Rs. XXX/-  which has already been handed over to the Trustees mentioned hereunder, is hereby acknowledged by the Trustees, who hereby accept the appointment as such Trustees of  the said Trust, under the terms and conditions, set out hereunder for the fulfillment of the  objects of the Trust, more fully and particularly described and set out hereunder.

 

3. REGISTERED OFFICE OF THE TRUST:

The registered office of the Trust is situated at present at <<Address>>

4. TRUSTEES:     

The AUTHOR OF THE TRUST has appointed the following persons to hold the office of the Trust as Trustees:

  • ________ s/o _______, residing at ______________
  • ________ s/o _______, residing at ______________
  • ________ s/o _______, residing at ______________

Of the above trustee’s the following shall be identified as Managing Trustee’s, Joint Managing Trustee and Deputy Managing Trustee respectively in order to take care of the day to day activities of the trust:

  • XXXXX as the – PRESIDENT
  • YYYYY as the – VICE- PRESIDENT
  • ZZZZZ as the – TREASURER

5. MOTTO OF THE TRUST:

6. OBJECTS OF THE TRUST:

The Purpose/object of the trust is charitable, educational in nature. The main objects of the Trust are:

  • Other objects of general public utility –

To undertake any other activity incidental to the above but which are not inconsistent with the above main objects.

PROVIDED THAT the trust may assist/donate to any other trust to carry out the various objects mentioned in the objects clause in such manner and to such extent the trustees may decide upon from time to time.

The TRUST has been created for charitable purpose within the meaning of the Income Tax Act 1961, and the objects of the trust are to afford relief of poor, advancement and encouragement of Indian culture and educational activities. The object of the trust will not include objects involving the carrying on of any activity for profit within the meaning of the Income tax act, 1961.

  • Clauses for ensuring exemption under sections 11 and 12 to the trust and enabling deduction under section 80G to the donors to the trust

AND IT IS HEREBY DECLARED that the relief to be granted as hereinabove mentioned shall not be limited or restricted to persons of any particular caste or creed or religion. So far as it is not inconsistent with the object herein mentioned –

(i ) the income as also the corpus of the trust fund shall be applied and he applicable only to or for such public charitable purposes only and within such territories only and subject to such conditions or limitations if any, as may from time to time be laid down in the Income Tax Act, 1961 or any other Act governing tax on of income as well insure or make the Trust hereby established and its income as eligible for exemption from taxation under the Income Tax Act, 1961 or any reenactment thereof or modification thereof or under any other Act governing taxation for the time being in force in India;

(ii) The Trust hereby established shall be one to which the provisions of section 80G of the Income tax act, 1961 or any replacement, reenactment or modification thereof for the time being in force may apply so that any donation made thereto may be recognized as eligible for exemption or relief from tax in the hands of the donor”

7. BENEFIT OF THE TRUST:

The Trust is established for the benefit for the humanity at  large and the class of people mentioned above without any kind of discrimination of caste, religion, creed or sex.

 

8. THE PROPERTIES OF THE TRUST

The Trust properties shall consist of

  • The amount Transferred by the AUTHOR OF THE TRUST as mentioned above, towards the Corpus Fund of the Trust.
  • Any cash or kind, properties, movable and immovable that may be acquired by purchase or otherwise or all manner of rights, title or interest in or over any property movable or immovable.
  • All additions and accretions to the Trust properties and the income there from.
  • All donations, gifts, legacies or grants, in cash or kind accepted by the Trustees upon Trust.
  • The properties of the Trust shall be utilized for the objects set forth herein above and subject to the provisions and conditions herein mentioned.

 

9.  POWER OF THE TRUSTEES;

The Board of Trustees shall have the control and management of the Trust and exercise the following powers:

  1. To determine from time to time to commence and to take up the object and purposes for which the funds of the trust shall be used and allot and allocate to each of the objects such portion of the funds as they deem fit;
  2. To purchase and acquire any immovable property of any kind for this object of the Trust or as a source of income for the Trust;
  3. To sell, mortgage, or dispose of any immovable property/properties belonging to the Trust;
  4. To incur all expenditure necessary as in their own opinion useful for carrying out the objects and administration of the trust;
  5. To sell, lease, mortgage or dispose of any property, immovable property/properties belonging to the Trust’
  6. To open one or more bank accounts of the trust with any bank or banks as the Trustees may deem fit and deposit monies of the Trust in the Bank accounts.
  7. To borrow for and on behalf of the Trust with or without security from banks, Governments, Universities or any other government Body/bodies both central and state;
  8. To employ staff of all kinds necessary and useful for carrying out the objects of the trust.
  9. To incur such other items of expenditure as is necessary and incidental for carrying out the objects of the Trust;
  10. To institute, conduct, defend, compound, withdraw, compromise, adjust, refer to arbitration or to do such things as are incidental and necessary, concerning the affairs of the Trust and to sign and verify vakalats, pleadings, affidavits and other powers’
  11. To delegate all or any of the powers vested in the Trustees to any body’ to frame rules, bylaws and other codes for the conduct of the affairs of the Trust and its transactions and establishing any Committee;
  12. To accept contributions in cash or in kind either by way of addition to the trust funds generally or for any one or more of the specified objects of the Trust.
  13. To establish as many adhoc committees for any purpose.
  14. To execute power of attorney or powers of attorney to any person for the purpose of executing, administering or managing the whole or any part of the Trust for the purpose of all or some among the objects of the Trust
  15. To receive voluntary contributions from any person or persons, any organization, association, trust and NGO from India or outside, after complying with the statutory formalities, by way of donation, gifts or in any other manner and to hold the same upon Trust for the objects set forth herein.
  16. The Trustees shall select from among themselves President, Vice-President, and Treasurer. No Trustee including the Managing Trustee shall hold more than one post of above offices at the same time. The persons holding theses offices of President, Vice-President, and Treasurer shall be under the administrative guidance and supervision of the Board of Trustees and will report through the Managing Trustees.

10. ROLES AND RESPONSIBILITIES AND POWERS

The Roles, Responsibilities and Powers of all these office bearers are defined below. In addition to these, the Board of Trustee may grant additional roles, responsibilities and powers to any of the Trustees as and when required.

(a) MANAGING TRUSTEES: In addition to discharging normal duties of a trustee, the Managing Trustee will be authorized to sign all documents, including bank documents, acknowledgements for the contributions received, and agreements with individuals, government institutions and other organizations on behalf of the Board of Trustees upon the decision of the Board for each and every case. Any document signed unilaterally by the Managing Trustees will stand null and void. The Managing Trustees are authorized to sign along with the Treasurer bank cheques, deposit release vouchers etc. The Managing Trustee along with the Board of trustees is responsible for ensuring that the Trust pursues its objects and for maintaining the dignity of the Trust organization and shall use his/her influence to promote the activities of the Trust.

(b) VICE PRESIDENT: The Vice President shall discharge the duties of the Managing Trustee, in the absence of the Managing Trustee of the Trust and shall have the power and authority delegated and assigned to him/her by the Managing Trustee. He shall maintain the records of the organization prepare and circulate agenda and minutes of Board of Trustees meeting. He shall be also responsible for the day to day administration activities of the Trust. He shall deal with correspondence received by the Trust, send replies in consultation with other Managing Trustees/President and/or the Treasurer where necessary. He/she is responsible for the safe custody of all the assets and records of the Trust. He shall represent the Trust in all legal matters, sign the papers related to legal cases, attend to courts or represent the Trust in Government offices.

(c) TREASURER: The Treasurer will prepare Annual Budget, monthly and yearly expenditure statements get the expenditure audited by auditor duly appointed by the Board of Trustees and place them before the Board of Trustees for approval if applicable. The Treasurer is responsible to maintain cash book and prepare vouchers for the payments made, receive contributions, sign acknowledgements for the amounts or articles received by the Trust and prepare monthly and yearly statements of revenue and expenditure, as well as, the register of assets of the Trust and place them before the Board of Trustees for their approval. The Treasurer is authorized to sign bank cheques, application for drafts and payment instructions jointly with the Managing Trustee and draw money from the bank, upto the limits defined by the Board of Trustees in their meetings. The Treasurer is responsible for safe custody of cash, bonds, securities etc. of the Trust. In case, the Treasurer wants to assign the work like preparing budget, monthly reports etc. he can do so with the prior consent of the other Managing Trustees to such person as the board may deem fit.

11. CESSATION OF TRUSTEESHIP:

      A Trustee mentioned above shall cease to be the trustee of the Trust if:-

         (a) he resigns;

         (b) he becomes insolvent;

  • He is removed by the majority of the members of the, if it is found that the trustee(s) activities are detrimental to the activities or administration or funds of the Trust

 

12. APPOINTMENT OF TRUSTEES:

Any vacancy in the Board of Trustees shall be filled up by the remaining members of the Trust selecting a suitable person.

13. MEETINGS OF THE TRUSTEES:

 

  1. The Managing Trustee shall preside over all the meetings of the trustees and in his absence the Joint Managing Trustee shall preside such meeting and in the absence of both, the trustees attended such meeting may elect any one of them to preside over the meeting;
  2. The meetings of the Trustees may be convened by the Managing Trustee or under his direction by any other Trustees
  3. One half of the Board of Trustees or a minimum of 2 trustees, whichever is higher, shall constitute the QUORUM for the Board of Trustees meetings.
  4. In the event of equality of votes, the person presiding such meeting shall exercise casting vote (additional vote).
  5. Any resolution in writing signed by all the Trustees by circulation shall have equal force as though it has been passed at a meeting of the Board of Trustees.
  6. The meeting of the Board shall be convened after giving at least a The Board of Trustees may invite other persons interested in the objects and functioning of the Trust to attend the meetings of the Board, but they shall not be entitled vote in the meetings of the Board. Weeks’ notice unless all the Trustees agree to accept a shorter notice.
  7. The Board of Trustees may invite other persons interested in the objects and functioning of the Trust to attend the meetings of the Board, but they shall not be entitled vote in the meetings of the Board.

 

 14 . SUITS:

The Managing Trustees of the Trust is authorized to sue or to be sued on behalf of the Trust.

 

15. EXECUTION OF DOCUMENTS:

All Deeds, Documents etc. shall be executed by the Managing Trustees jointly representing the Trust.

 

16. ACCOUNTS AND AUDIT:

  1. The Trustees shall maintain true and correct accounts of all Trust monies and of all the income and investments and all the outgoing expenses.
  2. The year of account shall be the financial year commencing from 1st APRIL and ending 31st
  3. The Trustees shall each year issue a report setting out the accounts showing the income and expenditure of the Trust for the preceding year not later than six months from the end of the preceding year of accounts.
  4. The accounts of the Trust shall be audited every year by a Chartered Accountant who may be appointed for the purpose by the board of Trustees and the audited statement of accounts together with Auditors’ report shall be laid before the Board of Trustees for approval

Provided that, the above clause (d) shall not be applicable to the trust if total income before the exemptions u/s 11 and 12 of the trust does not exceeds the maximum amount not chargeable to tax

17. BANK ACCOUNT:

The President, Vice-President and the Treasurer shall jointly/Solely operate Bank Accounts on behalf of the Trust. In their absence, any of the Trustees may be authorized by the Board of Trustees, by a resolution, to operate the bank accounts.

One or more Bank Accounts may be opened in any Bank and or Banks in the name of the Trust anywhere in carry out the objectives of the Trust.

18. AMENDMENTS:

While this Trust shall be irrevocable, the Board of Trustees may amend any of the clauses except those relating to objects of the Trust. The First Trustees, at a duly convened meeting of the Board with at least 2 weeks’ notice, and by a resolution passed by at least three-fourths majority of the Board of Trustees. The amendments to the Trust Deed can only be passed by a resolution of the Board of Trustees in an actual meeting and not by circulation.

If any alteration or amendment is necessary, the same shall be affected through supplementary deed/deeds with the previous approval of the Commissioner of Income Tax and these shall be read together with the main Trust deed.

 

19. APPLICATION OF INCOME AND TRUST FUND:

The Board shall also determine from time to time, the amount it shall spend on the various activities of the Trust.

The Board of Trustees shall have the power to invest the funds, assets and properties of the Trust at their discretion in accordance with the provisions of the Income Tax Act, 1961. As well as of any other law for the time being in force as are applicable to charitable trusts.

20. REMUNERTION TO THE TRUSTEES:

 

The Trustees are not entitled for any remuneration.  But they shall however be entitled to receive out of pocket expenses incurred by them in the course of discharging the functions of the Trust.  Further the Income and funds of the Trust will be solely utilized towards the objects and no portion of it will be utilized for payment of Trustees by way profits, interest, and dividend or otherwise.

 

21. INDEMNITY:

Every Trustee shall be indemnified out of the fund in respect of any loss arising from or contingent upon any investment made out of the monies of the Trust unless such loss shall have been occasioned by own negligence and also every Trustee shall be indemnified out of the Trust against all proceedings, suits, claims, costs, damages and expenses occasioned by any claim in connection with the matters or affairs relating to the Trust created by these presents or in the exercise of powers or discretion vested in them by virtue of these presents.

 

22. IRREVOCABILITY:

 

The Trust is irrevocable.

 

23. ACTIVITIES OF THE TRUST:

The activities of the Trust shall be only within India and its Union territories and shall not be extended anywhere outside India.

 

24. DISSOLUTION:

 

In the event of dissolution of the Trust, the entire Trust funds shall be realized and first be used for payment of liabilities of the Trust. The assets left if any the net assets of the Trust shall be transferred to an association of persons or trust or society having similar objects of this Trust, in no event it shall be distributed in any manner, to any of the Board of Trustees or their relatives or related concerns or to the settlor.,

 

25. PROCEEDING OF THE TRUST:

Any defect in the constitution of the Trust shall not invalidate its proceedings

 

26.RESIDUARY:

For matters not provided for in these presents, the provisions of the Indian Trust Act and the Income Tax Act, 1961 and rules made there under will apply accordingly.

   IN WITNESS WHEREOF THE AUTHOIR OF THE TRUST HAS SET HIS HAND AND SIGNATURE ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN IN THE PRESENCE OF

Witnesses:                                                                 SIGNATURE OF Author

  1. Name, Occupation and Address

Signature: ——————–

Name:

Address:

  1. Name, Occupation and Address

             SIGNATURE OF the Trustee’s

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