Clauses that decide the tax position
- Objects: specific charitable or religious purposes, not an open-ended list.
- Irrevocability: the settlor can't take the property back.
- Non-benefit: no income or property to be used for the benefit of the settlor, trustees or their relatives.
- Application of income: income applied to the objects, and investments only in permitted modes.
- Amendment: how the deed can be changed, and that changes to objects will be reported.
- Dissolution: assets go to another trust with similar objects, never back to the settlor or trustees.
Trustees and governance
Most disputes in trusts come from governance clauses written in a hurry: how many trustees there must be, how a new trustee is appointed, how one is removed, how decisions are taken, who signs cheques. We write those in plain, workable terms, with a quorum and a succession process that doesn't leave the trust stuck when a trustee dies or steps down.
Documents required
- Names, addresses, PAN and Aadhaar of the settlor and trustees.
- The proposed name and the objects in your own words.
- Initial corpus or property being settled on the trust.
- Registered office address and the owner's consent.
- For an existing trust: the current deed and any amendments.
How we draft it
Understand the purpose
What the trust will do, how it will be funded, and who will run it.
Draft
Objects and governance drafted together with the tax clauses.
Review
The settlor and trustees review the draft with us.
Execute and register
The deed is stamped, signed and registered with the Sub-Registrar — see trust registration.
Practical notes from our engagements
- Objects copied from another trust. They rarely fit, and objects that don't match what the trust actually does are a common reason for questions at registration.
- Settlor retains control indefinitely. Clauses that let the settlor overrule the trustees on everything can look like the trust isn't independent.
- Amendment clause missing. Without one, changing the deed later can be difficult or impossible.
How we handle trust deeds
We draft the deed alongside the trust's registration and tax plan, so the same document works for the Sub-Registrar, the bank and the income-tax department.
Related services
Frequently asked questions
Who can be a settlor of a trust?
Any person competent to contract, and entities such as companies, can settle a trust by transferring property to it.
Can a trust deed be amended?
Only if the deed provides for amendment, and in the manner it provides. Changes to objects must be reported to the income-tax department.
What should happen to assets on dissolution?
For a charitable trust, they should go to another charitable trust or institution with similar objects — never back to the settlor or trustees.
Does the deed need to mention 12A and 80G?
It doesn't need to name the sections, but it must meet their conditions — charitable objects, no private benefit, and proper application of income.
Can a family trust use the same format?
No. A private or family trust is set up for specific beneficiaries and is treated differently in law and tax. Its deed is drafted differently.