Formation of trust
N.B.Lal
(Querist) 18 June 2021
This query is : Resolved
I want to form a trust to take care of earnings from my estate after my death and use it for taking care of my invalid, wheelchair bound, physically and mentally challenged spastic son. I have one daughter but I dont trust her. All my nephews and nieces are settled abroad and may not be able to meet for meetings etc. Moreover all of them are senior to my son and may not outlive him. Who else can I make trusties outside of family for the purpose?
kavksatyanarayana
(Expert) 18 June 2021
It is better to execute a Will rather than the creation of a Trust. In the Will, you can appoint a trustworthy person as an "Executor"( like a nominee) to see all welfare of your son after you. As he/she cares about your son, you provide something in any way your wish. Trust can be created and you have to appoint a trustworthy person.
T. Kalaiselvan, Advocate
(Expert) 20 June 2021
Section 5 of the Act states that with respect to: Immovable property: A private trust must be created by a non-testamentary instrument in writing. Further, the non-testamentary instrument needs to be signed by the author of the trust or the trustee and has to be registered.
In simple words, a trust is nothing but a transfer of property by the owner (Mr X) to another person in whom the owner has confidence (Mr Y) for the benefit of a third person (closely related to X).
The property doesn’t just mean real estate. It could be cash, shares or any other valuable asset. Further, the instrument by which this entire trust is declared/created is called “the instrument of trust” or the “trust deed”.
Author/Settlor/Trustor/Donor (Mr X): The person who wants to transfer his property and reposes confidence on another for the creation of the trust.
Trustee (Mr Y): The person who accepts the confidence for the creation of the trust
Beneficiary (Mr X’s close relative): The person who will benefit from the trust in the near future.
You may look for some trustworthy person to be appointed as a trustee to the trust you propose to form now to take care of your spastic child in future
Advocate Bhartesh goyal
(Expert) 18 June 2021
