Deed of Private Trust
THIS
DEED OF TRUST is made at........ this........ day of........ between A
of........ hereinafter referred to as "the Settlor", of the One Part
and (1)X, (2) Y and (3) Z all of......... Indian inhabitants, hereinafter
referred to as the Trustees' of the Other Part,
WHEREAS-
1. The Settlor is
possessed of a sum of Rs......... (Rupees.........) and he desires to settle
the said amount on trusts hereinafter appearing for the benefit of his wife and
children.
2. The Trustees have at
the request of the Settlor agreed to act as the First Trustees of the said
Trusts and of these presents.
3. The Settlor has prior
to the execution of these presents transferred the said amount to the Trustees
to be held by the Trustees on trusts and subject to the powers and other
provisions hereinafter contained.
1. NOW THIS DEED
WITNESSETH that in consideration of the premises and in order to effectuate the
said desire of the Settlor and for diverse other good causes and
considerations, the Settlor doth hereby transfer and shall be deemed to have
transferred unto the Turstees the said sum of Rs........ To Have And To Hold
the said sum (hereinafter mentioned as'the Trust Fund') unto the Trustees to
the use and upon the Trusts and with and subject to the powers, provisions,
agreements and declarations hereinafter declared and contained of and
concerning the same.
2. 2. The expression
"Trust Fund" hereinafter appearing shall mean and shall be deemed to
Include the said amount ofRs,....... as well as all other sums, and any
property, moveable and immoveable that the Trustees may receive from the
Settlor or any other person or hold, by way of purchase or any other mode of
transfer or grant or acquisition or by way of interest accrued on Trust Fund
and dividends, rents, or other income and other accumulations howsoever made
and investments representing the Trust Fund for the time being and from time to
time.
3. 3. The Trustees shall
invest the Trust Funds in any of the investments hereinafter mentioned and
shall collect or receive the interest, dividends, rents, profits and other
income accruing on such investments from time to time and out of such gross
income the trustees shall deduct the following expenses-
a. The costs, charges
and expenses incurred for recovering or receiving such income from the
investments.
b. The wages and
salaries of any employees engaged for managing the Trust Fund or property.
c. If the Trust Fund is
invested in an immoveable property or properties or the trustees hold any such
property then
i.
the
expenses by way of payment of taxes, cesses, assessments,dues and duties
payable to the Government or any local authority or public body in respect
thereof,
ii.
the
expenses for carrying usual tenantable repairs, additions or alterations to
such property and keeping it in good condition,
iii.
the
expenses of insurance premium on policies obtained against any risk to such
properties,
iv.
fees
payable to any architect, legal adviser or other professional person in
connection with such property,
v.
all
other costs, charges and expenses for the management of the trust fund or
property not specifically mentioned.
4. After deducting or
setting apart the expenses mentioned in clause 3 above from the gross income of
the trusts fund the net income from the Trust Fund will be paid to........ the
wife of the settlor for being utilised for the maintenance and residence of
herself and for the maintenance, residence and education of the settlor's sons
and unmarried daughters who are minors viz........, On payment of such net
income the trustees shall not be entitled or bound to ask the said
Mrs........for the account of the amount so paid.
5. On the death of the
said Mrs......... or in the event of the said Mrs........ surviving the settlor
and thereafter remarrying, the income shall be utilised or spent by the
Trustees for the maintenance and education of the said children of the settlor
until the youngest of them attains majority. If the settlor is then alive the
net income shall be given to him as their natural guardian for the maintenance
and education of his said children.
6. If the minors or any
of them are looked after by any de facto guardian of the said minors, after the
death or remarriage of the said Mrs......... as aforesaid and the trustees are
satisfied about the bona fides of such guardian, the Trustees will be entitled
to hand over the net income to such guardian for the maintenance and education
of the said minors provided that the Trustees will do so only if such guardian
agrees to render account of the moneys so paid to him from time to time. If the
Trustees are not satisfied with the bona fides of such de facto guardian they should
apply to the proper court for appointment of some fit and proper person to be
the legal guardian of the minors and on such appointment the trustees shall pay
the net income to such guardian (even if the de facto guardian is so appointed)
for the maintenance and education of the said minors.
7. On the youngest of
the said children attaining majority, the trustees shall hand over and transfer
the trust fund then existing to the said children as tenants in common in equal
shares provided that, if the Trust Fund then existing does not comprise of or
include any immoveable property, the trustees shall divide the Trust Funds in
equal parts and hand over one part to each of the children absolutely.
8. If before the
youngest of the children attains majority, any of the daughters of the settlor
is married, the trustees shall spend a sum not exceeding Rs......... for her
marriage expenses out of the corpus of the Trust Fund and the amount so
expended shall be deducted out of her share in the corpus at the time of
distribution thereof as aforesaid.
9. The Trustees may from
time to time open in their own names one or more banking account or accounts
with such Banks as they shall from time to time decide and any two of the
Trustees shall have power to draw cheques upon such account, endorse cheques
and dividend warrants and pay or cause to be paid any moneys forming part of
the Trust Fund to the credit of such account or accounts or place the same on
deposit at any such bank or banks as may be necessary and otherwise to operate
such account or accounts.
10. The Trustees shall
invest and keep invested the said amount hereby transferred and all moneys that
may come in their hands as the Trustees hereof (except such part thereof as may
be required for current expenses for the purposes of the Trust premises not
exceeding Rs. 1000/-) in any of the securities authorised by Section 20 of the
Indian Trust Act II of 1882 as well as in Bank deposits, shares and debentures
of any public company or corporation and may from time to time at their
description vary the said investment into or for others of the same or a like
nature as may be beneficial to the Trust.
11. The Trustees shall
have full power to compromise or refer to arbitration any claim or account
whatsoever or any other matter in which the Interest of the trust fund is
involved and its funds and property may be concerned or wherein the Trustees as
such may be parties.
12. The Trustees shall
have the following further powers:
A. If the Trust Funds
include any immoveable property, (i) to let out any such property or any part
thereof at reasonable rents and on such terms as they may think fit. (ii) to
carry out repairs and renovations thereto as and when required, (iii) to sell
the same or part thereof at such price and on such terms as they think fit if
the Trustees do not think it necessary or economical to keep the property.
B. To appoint any
manager or supervisor or other employees in connection with the management of
the trust property.
C. To appoint any one or
more persons, by a power of attorney,authorising him to manage the trust
property or to do such other acts and things as the trustees may think lit in
connection with the trust property.
D. To appoint any proxy
or proxies for voting at any meeting of companies in which any part of the
trust fund is invested or any meeting of creditors or contributors in the
winding up of any such company.
E. To appoint any
solicitor or advocate, architect or any other professional person in connection
with the Trust Fund or property whenever their services are required and to pay
their fees.
F. To file or defend any
suit or other legal prodeedings, including appeals, petitions and to authorise
any of the Trustees to make, sign or declare, plaints, written statements of
defence, affidavits, petitions. Vakalatnama and to accept service of any
summons or other legal process.
G. To authorise any of
the Trustees to appear before any Central or State Government Officers or
authority such as Officers under the Income-tax Act. Customs and Excise Acts,
Officers of the Municipal Corporation or any Local Authority, Sub-Registrar of
Assurances, Revenue Officers and Tribunal as and when required in connection
with the trust fund or property thereof.
13. The receipt of the
Trustees for the purchase money of any property hereby directed or authorised
to be sold or for any other moneys paid and for any securities transferred to
them by virtue of these presents or in the execution of any of the trusts or
powers hereof shall effectually discharge the person or persons paying or
transferring the same or from being bound to see to the application or being
answerable for the loss or misapplication thereof.
14. The Trustees shall be
responsible for their own individual acts and defaults only and not for the
acts or defaults of another of them nor for the acts or defaults of any banker,
broker, auctioneer or other persons into whose hands any trust property
consisting of securities or money or the income thereof shall in the ordinary
course of business come nor for the depreciation of any property or securities
nor for any mistake or error of judgment committed by them in regard to the
choice of the recipients of the benefit of the Trust premises or the objects
thereof in any particular case or cases nor otherwise howsoever except for the
willfull acts and default only.
15. The Trustees shall
pay themselves and defray and satisfy out of the trust fund for the time being
all expenses which they may reasonably have to incur in and about the execution
of the trusts and powers herein contained and the administration of the Trust
premises hereby effectuated,including the premia for the insurance of the
buildings for the time being subject to the trusts hereof but the Trustees
shall not be personally responsible for any loss arising in consequence of any
accidental omission to insure any building against risk from fire or other
risk.
16. The Trustees shall
cause proper accounts to be kept of the Trust Fund and all additions thereto
and the income thereof respectively and the accumulations of such income and
the application thereof from time to time and shall on checking the same sign
the account books twice in each year. The account books so signed by the
Trustees shall be examined, audited and certified by one or more properly
qualified auditor or auditors once in each year and the audited statements of
account shall likewise be signed by all the Trustees.
17. The Trustees may at
some convenient place in....... and at convenient intervals hold meetings from
time to time as occasion shall require, for the transaction of the business of
the Trust premises and the Trusts hereof.
18. Any one Trustee may
convene a meeting of the trustees for the transaction of any particular
business and any business may be disposed of by a circular instead of at a
meeting unless the majority of the Trustees think otherwise.
19. At least two clear
days notice shall be given to the other Trustee or trustees as to the place,
hour and day of the meeting and of the nature of the business to be transacted
thereat.
20. The original minutes
of the proceedings of every such meeting shall be deposited at the office of
the Trustees who shall provide for the safe custody thereof.
21. If and so often as
any of the Trustees hereby appointed or any future trustees or trustee of these
presents shall die or go to reside out of India for more than a year or shall
desire to retire or refuse or become unfit or incapable to act in the Trusts of
these presents or shall become bankrupt or insolvent or if the Settlor or the
Trustees for the time being shall be desirous of appointing additional Trustee
or Trustees hereof with them. it shall be lawful for the Settlor during his
life and after his death for the surviving or continuing trustees or Trustee
for the time being of these presents or if there shall be no surviving or
continuing trustee then for the retiring or refusing trustees or trustee or the
heirs, executors or administrators of the last surviving trustee to appoint any
other person or persons to be a trustee or trustees in the place of the Trustee
or Trustees so dying or going to reside abroad or desiring to retire or refusing
or becoming unfit or incapable to act as aforesaid or to appoint an additional
trustee or trustees as aforesaid with liberty upon such appointment to increase
or diminish the original number of trustees which shall never be leas than two
or more than five and upon every appointment made under this clause the trust
fund and the investments for the time being thereof shall be so transferred as
to become vested in the new trustees or trustee either jointly with the
continuing trustees or trustee or solely as the case may require and every
trustee so appointed as aforesaid may as well as before or after such transfer,
act as fully and effectually as if he had been hereby constituted a trustee.
22. In all cases of
difference of opinion amongst the trustees as to whether a particular act
should be done or omitted to be done in the execution of the trusts hereof or
as to the powers and authorities herein contained or as to the true intent and
meaning of any of the clauses or trusts hereof the same shall be decided and
dealt with in accordance with the opinion of the majority which shall be final
and conclusive. In case of an equality of votes the Trustee senior most in age
shall have a second or casting vote.
23. The expression
'Trustees' in this deed shall mean and include the Trustees or Trustee for the
time being and from time to time, the survivors or survivor of them and the
heirs, executors, administrators of the last survivor of them.
IN
WITNESS WHEREOF the Settlor and the Trustees have set their respective hands
the day and year first hereinabove written.
Signed,
sealed and delivered by the withinnamed Settlor..........
in
the presence of
Signed,
sealed and delivered by the
withinnamed
Trustees
1.
2.
3.
in
the presence of........................
