Declaration Of Trust (private) Deeds Trust 1693 - Legal Draft

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Category : Deeds Trust

DECLARATION OF TRUST
(PRIVATE)

Declaration of Trust is made at... this ... day of ... by Mr. ... as follows
WHEREAS -
1. The said Mr. ... is the owner of an immoveable property consisting of land and building situated at and more particularly described in the Schedule hereunder written.
2. The said building is occupied by monthly tenants and is yielding an income of about Rs.... per year,
3. The said Mr...........(hereinafter referred to as the Declarant or Trustee) desires to settle the said property on trust for the benefit of himself and his wife and ultimately for the benefit of his children in the manner following.
NOW THIS DEED WITNESSETH and the Declarant hereby declares that he will hold the said property described in the Schedule hereunder written on Trusts (and not as the beneficial owner thereof) and with the powers, and subject to the provisions and declarations hereinafter provided.
4. The Declarant as such trustee as aforesaid shall recover and collect the income from the said property by way of rent or otherwise howsoever and from the gross rent collected he will pay
(a) all the Municipal and other taxes and other levies, revenue assessment etc. in respect of the said property.
(b)the necessary expenses required for carrying out tenantable repairs and expenses for the maintenance of the said property.
(c) the insurance premium in respect of the insurance of the said property against fire, earthquake and other accidents as the trustee may think fit.
(d).the salaries or wages to the persons such as watchmen, sweepers, rent collector, employed by him for the management of the property.
5. After paying the expenses as mentioned above from the total income received, the net income will be utilised by the Declarant for himself absolutely and without liability to accounts for his own maintenance and of his family during the lifetime and until death of the Declarant.
6. On the death of the Declarant, the said net income will be paid to the wife of the Declarant absolutely and without liability to account, for her lifetime and until her death.
7. On the death of the wife of the Declarant or if the wife predeceases the Declarant then on the death of the Declarant, the said net income, shall be utilised by the Trustee or Trustees of these Presents for the maintenance and education of the children of the Declarant living at the death of his wife or the Declarant as the case may be until the youngest of them attains and completes the age of 13 years.
8. On the youngest of the children of the Declarant attaining and completing the age of 18 years, the said property shall be transferred by the Trustee or Trustees for the time being of this trust to the said children absolutely and in equal shares and thereon this trust will come to an end.
9. The property of the said Trust hereby created will be the said property described in the Schedule hereunder written, and if it is sold, the net sale proceeds thereof, the investment and securities in which the income or any part thereof or such sale proceeds may be invested by the Trustee or Trustees for the time being and any other property moveable or immoveable that the Declarant may hereafter transfer to the Trustee or Trustees of this Trust and to be held on trusts herein created. All such property of the Trust is hereinafter mentioned as 'Trust property' or 'Trust Fund',

10. The Declarant shall have power at any time hereafter to appoint one or more trustee or trustees of these Presents and to transfer the trust property to him or them alongwith the Declarant and in that the Trustee or Trustees shall hold the property on the Trusts and with and subject to powers and provisions herein contained.
11. The Trustee or Trustees for the time being of this Trust, shall open a separate account in his or their names with one or more Banks and the account will be operated by the Trustee or if more than one then by Trustees jointly. All the Income from the Trust property will be credited to such account or accounts and all expenses regarding the Trust property will be made from such account or accounts.
12. The trustee or trustees shall have the powers (i) to let out or give on leave and licence basis any portion of the Trust property which is vacant on such rents and terms as the trustee or trustees may think fit. Provided that, no premises will be let out except on monthly tenancies, (ii) to carry out tenantable repairs to the trust property including periodical white washing, (iii) to appoint watchmen, sweeper, rent collector or any other employee necessary in the management of the trust property, (iv) to take any legal proceedings for protecting the trust property against any trespass or to evict any tenant or occupant or to enforce the right or, title of the Declarant and the trustee or trustees to the Trust property or otherwise howsoever, (v) to defend any legal proceedings taken in respect of the Trust property, (vi) for the said purposes to sign declare and file any proceedings, pleadings, affidavits, and other papers, to appoint advocates and to pay their fees, to incur necessary expenses for such proceedings, (vii) and to do all other acts and things as may be necessary to maintain the trust property and to carry out the trust hereby created, (viii) to compromise or refer to arbitration any dispute regarding the trust property.
13. The Trustee or Trustees shall have no power to sell or mortgage or create any encumbrance on the trust property. Provided that, if the trustee or trustees shall come to think in course of time but if is not economical to maintain the property or the net income is very insufficient to maintain the persons mentioned above, the trustee or trustees may, with the sanction of the Competent Court, sell the trust property or any part of such property or any part thereof at the best price available and shall hold the net sale proceeds on the same trusts as are herein contained.
14. The trustee or trustees shall keep all cash amount, not required to be spent as per these Presents, invested in any trust security or securities authorised by the Trust Act, 1882 including fixed deposits with any nationalised Bank or Banks.
15. 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.
16. The Trustee or Trustees shall be responsible for their own individual acts and defaults only and not for the acts or defaults of the other 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 judgement 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 wilful acts and default only.
17. The Trustee or 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.
18. The Trustee or 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 auditors once in each year and the audited statements of account shall likewise be signed by all the trustees.
19. If and so of ten as any of the Trustees hereunder appointed including the Declarant 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 Declarant or the Trustees for the time being shall be desirous of appointing additional Trustee or Trustees hereof with him or them it shall be lawful for the Declarant 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 less 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.
IN WITNESS WHEREOF the Declarant has put his hand the day and year first hereinabove written. THE SCHEDULE ABOVE REFERRED TO:
XXXX
Signed and declared by )
the withinnamed Declarant )
Mr. ... in the )
presence of )