Procedure for merging one trust with other trust

Querist : Anonymous (Querist) 26 January 2024 This query is : Resolved
Hi Team,
i need your help in knowing the procedure of Merging one trust with other trust
we have trust A which is having general social service objectives but we some donations for Annadanam and temples development (these are activities mentioned in deed)

now we recently started Other Trust B which does Temples development and Annadanam alone so
can we merge this 2 trusts and also can we donate the Amount to Trust B or merge them

Note: this trust's is not have any 80G and have only temples development and Annadanam in common

so can any one help me with leaving a steps to complete this procedure

is it writing an agreement by both parties of trusts in 20 rupees stamp paper is fine or do we need to register that as well ?

please suggest

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Quick Summary

This discussion outlines the process for merging two trusts, specifically when Trust A has broader social service objectives and Trust B focuses on temple development and Annadanam. It clarifies that merging is possible if both trusts have similar aims and objects, and that prior permission from the Charity Commissioner or a court order is essential. The procedure involves a resolution by the trustees of both trusts to transfer assets and liabilities, and while beneficiary consent isn't mandatory, they must be notified.

T. Kalaiselvan, Advocate (Expert) 26 January 2024
Trust is defined in section 3 of the trust act, 1882 as "an obligation annexed to the ownership of property and arising out of a confidence reposed in and accepted by the owner" it is a transfer of property by the owner to another for the benefit of a third person along with or without himself or a declaration by the owner. Under Indian laws, various kinds of public and private trusts can be formed.
The trustees may amalgamate the Trust with another Charitable Trust or Institution having similar objects with prior permission of the Charity Commissioner/Court/any other law as may be applicable for the time being.
The trustee must ensure that the terms of the trust and state law permit combining the trusts before acting.
The trustee is not required to get consent from the beneficiaries before consolidating the trusts but must notify them before doing so.

kavksatyanarayana (Expert) 26 January 2024
Yes. The trustees of each trust in their meeting with the majority, the merging trust shall decide to hand over the assets and liabilities to the other trust with the same aims and objects and that trust shall take over the assets and liabilities. For both trusts the permission of the Commissioner or a court order is a must.

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