MODEL TRUST DEED FOR A PRIVATE
SPECIFIC TRUST DEED OF TRUST OF______________ TRUSTTHIS DEED OF TRUST made at _______ this day of _______ 2000 BETWEEN
_________________ residing at ____________ __________ hereinafter called
"the Settlor" (which expression shall unless it is repugnant to the
context or meaning thereof be deemed to include his heirs, executors and/or
administrators) of the One Part AND (1) -------------------- residing at
_____________ AND (2) ------------------ residing at ________________,
hereinafter called "the Trustees" (which expression shall unless it
be repugnant to the context or meaning thereof be deemed to include the
survivors of survior of them and the heirs, executors and administrators of the
last survivor and the trustees or trustee for the time being of these presents,
their, his or her assigns) of the Other Part;i.
WHEREAS
the Settlor is seized and absolutely possessed, inter alia, of an amount of
Rs._________/- (Rupees ___________________ only) in
cash;ii.
WHEREAS
out of natural love and affection which the Settlor bears towards the
beneficiaries (i) ___________________ and (ii) _________________ who are the
(relationship) of the Settlor, the Settlor is desirous of settling a sum of
Rs._____/- (Rupees _____________ only) upon and subject to the trusts, powers,
provisions, agreements and declarations hereinafter declared and contained of
and concerning the same and the Settlor has requested the Trustees to act as
the Trustees thereof, which the Trustees have consented to do (as is testified
by their being parties to and executing this Deed);AND WHEREAS in pursuance of the said desire the Settlor has, prior to the
execution hereof, handed over cash of Rs.5,000/- (Rupees five thousand) and a
cheque for Rs. _________/- (Rupees ________________ only) to the Trustees and
the Trustees have accepted and taken possession of the same and they shall hold
the said amount upon the Trusts and with and subject to the powers and
provisions hereinafter declared and contained;NOW
THIS DEED OF TRUST WITNESSETH as follows:-1. The Settlor
_________________________has conveyed, transferred and assigned to the
Trustees the said amount of Rs. 5,000/- (Rupees five thousand only) in cash and
Rs. _________/- (Rupees ______________________ only) by cheque.2. The Trust shall be
known as "..................." but it may hold assets or carry on
business in any suitable name.3. The Trustees hereby
declare that they the Trustees shall hold and stand possessed of the said
property which is referred to as "the Trust property" which
expression shall also include cash and any other property and investments of
any kind whatsoever into which the same or any part thereof might be converted,
invested or varied from time to time or such as may be acquired by the Trustees
or come to their hands by virtue of these presents or by operation of law or
otherwise howsoever in relation to these presents, upon the Trusts and with and
subject to the powers, provisions, agreements and declarations hereinafter
declared and contained concerning the same.4. The Trustees shall
hold and stand possessed of the Trust property upon the following trusts that
is to say:-a. to manage the trust
premises or Trust Fund and collect and receive the interest, dividend and other
income thereof;b. to pay and discharge
out of the income of the Trust Fund all costs, charges and expenses for
collecting and receiving the income of the Trust Fund and all other assets,
charges, expenses and outgoings of and incidental to the Trusts created by
these presents and administration thereof;c. to close the accounts
of the Trust on the 31st day of March of every year and pay to or accumulate or
spend the net income of the Trust among the beneficiaries in the following
properties:-i.
%ii.
%1. If either of the
beneficiaries dies before the determination of this Trust his or her share and
interest in the Trust shall devolve upon the survivor and in the event of the
death of the survivor before the determination of the Trust it shall devolve
upon his legal heirs.a. The income of the
Trust shall be credited to the respective accounts of the beneficiaries.b. Any amount withdrawn
by the beneficiaries or on their behalf shall be debited to the respective
accounts of the beneficiaries.c. The Trustees shall
also be entitled to spend any part of the corpus or of the amounts credited to
the accounts of the beneficiaries for their maintenance, education and medical
relief or for any other benefit of the beneficiary concerned and such amounts
shall be debited to the respective accounts of the beneficiaries.d. The Trust shall be determined
when the younger of the beneficiaries attains the age of ...... years or on
such earlier date as the Trustees may in their absolute power decide. On the
determination of the Trust the corpus of the Trust property shall be divided
among the beneficiaries existing at the time according to their shares and if
there is no existing beneficiary then to the legal heirs of the beneficiary who
dies last.1. It is hereby agreed
and declared that the Trustees herein appointed or to be appointed in future as
hereinafter provided shall manage the trust property and for this purpose they
shall have full power at all times to sell, convert, transfer or alienate any
one or more of the Trust properties and to convert the proceeds thereof in
other properties, securities or investments as they may deem fit.2. The Trustees may
receive and accept any donations, gifts or bequests from the Settlor or any
other person or persons for the purpose of the Trust. The Trustees may also
accept deposits or take loans from any person including the Settlor on such
terms and conditions as they may deem fit. Without affecting the generality of
the powers, provisions and authorities vested in the Trustees under these
presents the Trustees' shall have in addition thereto and not in substitution
thereof, the following powers and authorities and they shall be entitled to
execute all acts, documents and things necessary, ancilliary or incidental
thereto, that is to say :-a. To open banking
accounts of the Trust in any bank or banks of repute in the name of the Trust
or in the name of any Trustee or Trustees and such bank account may
be operated by any one of the Trustees individually.b. To borrow monies or
raise loans and funds required for any purpose, power or provision either directly
or indirectly concerned with the objects of this Trust or incidental to these
presents from any bank or other person or concern.c. To draw, make,
accept, endorse, discount, execute or issue promissory notes, bills of exchange
and other negotiable instruments.d. To purchase, take on
lease or sub-lease, leave and licence basis, co-operative schemes or any other
arrangements or in exchange or hire movable or immovable property including
residential flats or commercial units and any rights, benefits or privileges
which the trustees may think necessary or convenient.e. To construct,
develop, maintain, erect, fabricate and alter any building, structures,
industrial estates, factories and storage tanks or works of any nature
whatsoever necessary or convenient or as the Trustees may think fit.f. To sell, improve,
manage, develop, exchange, lease, mortgage, pledge, hypothecate, dispose of or
turn to account and deal with all or any part of the Trust Fund and premises
hereby settled or any part or parts thereof.g. To organise agencies
or officers or to make any other arrangements necessary for conducting and
managing the Trust and to appoint such agents and representatives on their
behalf as the Trustees may think fit.h. To purchase on
ownership or take on rent or compensation residential flats, business premises,
industrial sheds or factory premises, godowns or open plots of land and let out
the same on leave and licence or compensation or warehousing charges or storage
charges.i. To carry on any
business or businesses including that of import or export of any commodities,
import and export and banking or enter into partnership or joint ventures or
other arrangements with any other person, firm, body corporate, society,
federation, association of individuals or otherwise howsoever for carrying on
any business or businesses, industries or commercial activities for and on
behalf of the Trust and to appoint any one or more Trustees to be partners,
representatives or nominees or nominee for and on behalf of the Trust to carry
out or implement any such arrangements.j. The Trustes shall be
entitled to determine whether any money or property shall for the purpose of
this Trust be considered as capital or income and whether expenses, outgoings
or loans ought to be paid or borne out of the corpus or income and any such
determination of the Trustees shall be conclusive.k. The Trustees may
deposit any documents of title or any other papers or documents or certificates
held by them relating to any movable or immovable property or relating to the
Trust under these presents with any bank or bankers or any other person, firm,
or company whatsoever for safe custody and may pay any such charges payable in
respect of such deposits.l. The Trustees instead
of acting personally, may employ and pay any agents, person or representative
including any bank or insurance company to transact any business or to
do any act whatsoever in relation to the Trusts of these presents including the
receipt and payment of moneys without being liable for loss and shall be
entitled to be allowed and be paid all charges and expenses incurred hereby.m. The Trustees may from
time to time appoint on such terms with or without remuneration as they may
determine any immovable or movable property subject to the provisions of this
Trust and the Trustees shall have powers to pay them salary, wages, emoluments,
fees and remuneration.n. In the event of the
Trustees doing any business or starting an industry or undertaking either
themselves or in partnership with others or as joint venture and their
incurring any losses thereby, they will be entitled to be reimbursed out of the
Trust all losses incurred as well as all costs, charges and expenses incurred
by them in starting or defending any proceedings.o. The Trustees shall
have the power to make investments in movable or immovable property, to give
loans on interest or otherwise to purchase shares, debentures and other
securities, Government bonds etc and to make any other investments as the
Trustees in their sole discretion may deem suitable.1. In the event of the
Trustees purchasing an immovable property or properties out of moneys belonging
to the Trust it shall be lawful for the Trustees to repair, pull down, or
rebuild them or construct any other buildings or structures out of the corpus
of the Trust Fund and to give such properties on lease or tenancy or leave and
licence or in any other manner on such terms at such rent or rents and upon
such conditions as the Trustees may think fit and to make allowance with
tenants and others and the Trustees shall also have the power to condone
breaches of covenants and to accept surrender of lease or tenancy etc. and
generally shall have all powers of management of such immovable property or
properties as absolute owners without being responsible for loss or damage that
may happen thereby and it shall be lawful for the Trustees at any time to sell
such immovable properties or property or part or parts thereof or easements
rights or privileges exercised or enjoyed in, over, for upon or under such
immovable property or properties and upon any such exchange to give or receive
moneys for equality or exchange.2. The Trustees may make
any such sale as aforesaid either by public auction or private contract and
may make or agree to any stipulations or provisions as to evidence to title or
commencement of title or otherwise to any conditions of sale or contract for
sale or exchange and may buy in at any sale by auction and rescind or carry any
contract and enter into any new contract for any of the purposes aforesaid
without being responsible for any loss. The Trustees may execute assurances
and give effectual discharge for any such sale or exchange which they may think
proper.3. In the event of any
difference between the Trustees concerning the affairs of the Trust, the
decision of the majority of the Trustees shall prevail.4. The Trust being
established hereby shall be irrevocable and no part of the Trust Fund shall in
any circumstances whatsoever be paid or lent to or be applied for the benefit
of the Settlor. If the Trust fails or is held to be invalid for any reasons,
there shall be no resulting trust in favour of the Settlor but the assets of
the Trust shall be divided amongst the beneficiaries in the proportion
mentioned in clause (4) above.5. Any Trustee for the
time being hereof may at any time retire from the Trust on giving not less than
one month's notice in writing of his intention to do so to the other Trustees
for the time being hereof and upon expiry of such notice the Trustee giving
such notice shall cease to be a Trustee of these presents.6. Every one of the
Trustees for himself doth hereby agree that in the event of his vacation of the
office of the Trustee, he shall do all necessary acts, deeds and things for
effectively transferring over unto the name/names of the additional Trustees or
Trustee the Trust Fund and all costs attending such transfer shall be borne out
of the income of the Trust Funds.7. It shall be always
lawful for the Trustees to appoint any additional Trustees or Trustee of these
presents and if the Trustees hereby appointed or any of them or any future
Trustee or Trustees hereof shall die or remain abroad for more than 2 years
continuously or become bankrupt or insolvent or desire to be discharged or refuse
or become unfit or incapable to act or if the Trustees shall be desirous of
appointing any additional Trustees or Trustee along with them then in and every
such case it shall be lawful for the Trustees or the surviving or continuing
Trustees or Trustee for the time being and if there be no surviving or
continuing Trustee or the refusing or retiring Trustees or Trustee if unwilling
to act and failing them then the heirs, executors or administrators of the last
surviving or continuing Trustee/Trustees becoming unfit or incapable to act to
appoint a new Trustee or Trustees and upon any such appointment the number of
Trustees of these presents shall at no time be less than two nor more than
seven and upon every such appointment the Trust property and the Trust Fund
thereof shall (if and so far as the nature thereof or the other circumstances
so require or admit) be transferred so that the same may be vested in the
Trustees or Trustee for the time being and every Trustee so appointed may as
well before or after such transfer of the Trust property or funds act and/or
assist in the execution of the Trusts and powers of these presents as fully and
effectively as if he had been hereby originally constituted as a Trustee
hereof. Acceptance in writing by the substituted or additional Trustee or
Trustees shall be sufficient to vest the Trust Funds in such Trustees or
Trustee.8. The Trustee will from
time to time decide questions arising with respect to the administration of the
Trust and may keep a record by way of minutes of work done and resolutions
arrived at by them at their meetings convened or by circular.9. In case any Trustee
whether present or future, happens to be a professional person he will be
entitled to payment of professional fees for work done by him or by a firm in
which he is a partner and he shall not be liable to account for any share of
profits received by him from the firm.10. And it is hereby
further agreed and declared that the Trustees for the time being of these
presents shall be respectively chargeable only for such Trust Funds and the
income including moneys, stocks, funds, shares and securities as they shall
respectively actually receive notwithstanding their responsibility and shall be
answerable and accountable only for their own acts, receipts, neglects and/or
defaults and not for those of the other or others of them nor any banker,
broker, auctioneer or agents or any other person or persons into whose hands
any Trust Funds or Trust income may be deposited or come nor for lending or any
security with less than marketable title nor for the insufficiency or
deficiency of any stocks, funds, shares, securities nor any other loss unless
the same shall happen through their own wilful defaults or dishonesty
respectively and also that the Trustees or Trustee for the time being of these
presents may reimburse themselves or himself and pay and discharge out of the
Trust Funds and property all expenses incurred in or about the execution of the
Trust or powers of these presents.11. The Trustees shall
have power from time to time to make rules and bye-laws relating to their
meetings and conduct of the business and otherwise as to the management of the
Trust Fund and from time to time carry out, alter or add to such rules or
bye-laws provided however that such rules or bye-laws are not inconsistent with
the terms of these presents.IN
WITNESS WHEREOF the parties hereto have hereunto set and subscribed their
respective hands the day and year first hereinabove written.SIGNED
AND DELIVERED by the)With
in named SETTLOR )Mr.___________)in
the presence of )SIGNED
AND DELIVERED by the)With
in named TRUSTEES)(1)___________________
and)(2))in
the presence of)