Creation of Family Trust in India
30May
A Private or Family Trust is like creation of a new family member to take care of certain wealth / assets. Such Trust do not require any Government approval or any intervention of any outsiders / Government (i.e. Charity Commissioner Office or Income Tax Office) etc.
Private Family Trust is created for various reasons to continue keeping overall control even after demise, like:
- To take care of Special Child;
- To take care of Family, Parents, Medical Needs, Marriages, Education etc.
- To avoid inheritance taxes in certain developed countries
- To create safe fence around wealth or to keep wealth cross border
- To distribute wealth to family after few years due to their young age
- To manage business succession in a time-bound manner
Creation of family trust in India can be created in couple of weeks with following actions:
- Decide objective or purposes of Trust
- Decide names of Beneficiaries
- Decide names of Trustees
- Decide address of Trust
- Decide how much assets to be transferred on creation
- Decide rules of Trust management
- To prepare Trust Deed
- Signing and Registration
- Apply for PAN
- Open a Bank Account
- Deposit initial Trust fund
- Transfer other assets / immovable properties / business
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