Settlement of Property for the Benefit of Minor Children
This deed of settlement is made on this ……………… day of ………… 2000 between AB son of ……….………………… residing at ………………… (hereinafter called the settlor) of the first part and CD son of ……………… residing at ………………… (hereinafter called the trustee which term shall unless the context otherwise requires include his heirs, successors legal representatives) of the second part and X, Y and Z all are sons of K represented by their mother and natural guardian (the said X, Y, Z are hereinafter referred to as the beneficiaries which term shall unless excluded by or repugnant to the context shall include their heirs, successors, legal representatives) of the third part.
This deed witnesseth as follows:
In consideration of natural love and affection which he, the settlor, had and bears for X,Y,Z, the minor sons of K, and for other good reasons and considerations he, the settlor, doth hereby and hereunder grant, convey, transfer, assign, assure unto and to the use of the said CD and settle the property belonging to the settlor which is fully mentioned and described in the schedule below and deliver possession of the same to have and to hold the same in trust and for the use and benefit of the said beneficiaries, viz., the said X, Y, Z as aforesaid subject to the terms and conditions hereunder expressed and declared.
(1) The trustee shall assume charge, possession, control, supervision and management of the said property and administer and develop the same either personally or through an agent to be employed by him in a manner as might be most profitable and beneficial to the interest of or otherwise most advantageous to the trust and also the beneficiaries.
(2) The trustee shall, out of the rents, issues and profits, pay all municipal taxes and other capital and revenue liability of property, all costs, charges and expenses for maintenance and preservation and spend the surplus for the maintenance and education of the beneficiaries and invest the balance, if any, in some securities approved by law. He shall have power to change such investment from time to time as he shall think fit and proper.
(3) The trustee shall have no power to sell, mortgage or otherwise deal in the said property or any part thereof except with the consent in writing of the settlor first had and obtained, or in the alternative with the permission of the District Judge having jurisdiction over the subject-matter of the trust.
(4) The trustee shall keep and maintain proper accounts of all incomes and expenses which shall be open to the inspection of the settlor and upon the youngest beneficiary attaining the age of 21 years grant, convey, transfer the said property unto and in their favour absolutely and for ever when and in such an event the trust executed hereunder shall come to an end.
Provided, however, that in case the property or any portion thereof is acquired by the Government, the trustee shall invest the compensation money to be awarded in purchase of some other property to be held in trust on terms hereunder provided.
The estimated market value of the property is Rs. …………………
In witness whereof the said AB the settlor has executed these presents on the day, month and year first above-written.
Signed, sealed and delivered by AB the settlor in the presence of:
Signed, sealed and delivered by the mother and natural guardian of the beneficiaries.