Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

m.kupparaju (Advocate)     16 July 2009

Trust Deed

2 Settlors executed a Registered Trust appointing 7 trustees (including 2 of themselves as Trustess) and created a Public Charitable Trust with a fund of Rs.10,000/- in a Nationalized Bank A/c in the year 1999 and the Settlors closed the same in the year 2007 and later both of them died with an irrecovable character for  the Trust,  without any fund for the charitable purpose, surviving trustees decided to revoke? whether without the Settlors will it be possible to revoke? what procedure  to be taken to revoke/cancel the Trust.



Learning

 2 Replies

A V Vishal (Advocate)     17 July 2009

Please check if the following clause is present in the trust deed,

 In the event of the dissolution of the trust for any reason whatsoever all the funds and assets that are remaining after full satisfaction of all Liabilities shall be paid or transferred to any other trust, organisation or institution having similar objects and which was registered under Section 12-A of the Income-tax Act, 1961 and shall not be repugnant to the  provisions of Section 80-G of the Income tax Act, 1961.

In such a situtaion you can revoke the trust and settle the accounts.

N.Ramakrishnan (Advocate/ Senior Partner)     18 July 2009

Dear Mr. Kuppuraju,

Our friend Vishal is right. In your case it looks as if the Trust is left without any corpus or assets and hence if there are no subsisting liabilities, the present trustees can revoke the trust.

Ramakrishnan, Adv 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register