Private Trust for Management and Preservation of Property
This deed of trust is made on this ……………… day of ………… 2000 by AB son of …………………… residing at ………………… (hereinafter referred to as the settlor) of the one part and CD son of …………… residing at ……………… EF son of ……………… residing at …………………… and GH son of ……………… residing at ……………… (hereinafter called the trustees which term shall include the Trustee or Trustees for the time being) of the other part.
Whereas the said AB owns and possesses all that property detailed and specified in the Schedule hereto which are his self-acquired property and over which he has full disposing power under the Hindu law.
And whereas the said AB has for some time past been keeping indifferent health and is unable to look after his affairs and manage the said properties and has lost all hopes of complete recovery.
And whereas his only son CD having long been subject to epileptic fits is now a man of weak intellect and of almost unsound mind totally incapable of managing the household and estate affairs.
And whereas for reasons and considerations as aforesaid and for the due management, protection and preservation of his estate, the said AB is desirous of creating a trust in respect of his aforesaid property in the manner hereinafter appearing.
And whereas the total value of the aforesaid property is estimated at Rs. …………… as detailed in the Schedule hereto.
Now this deed witnesses as follows:
1. This said AB in pursuance of his wish and desire as aforesaid do hereby grant, convey and transfer all that property described in the Schedule hereto (hereinafter referred to as the trust property) unto and to the use of the trustees to have and to hold the same in trust for the said AB and after his death upon trust hereinafter declared concerning the same with and subject to such powers and limitations as are hereinafter specified.
2. The trustees shall by themselves or through an agent or agents employed by them manage and administer the trust property in such a manner as might be most beneficial to the interest of the trust and shall realise the rent, dividend, interest and other income accruing from the trust property and the said AB shall make such formal endorsements and execute such document or documents and do every such thing as may be legally necessary to enable the trustees to realise such income:
Provided that so long as the said AB or his wife shall remain alive and in full possession of his senses, the trustees shall have no power to sell, mortgage or otherwise transfer any portion of his residential house except with his express consent if he is alive and able to give consent or with the consent of his wife in the event he is dead or is unable to give his consent.
3. During the said AB’s lifetime, the trustees shall spend the income of the trust property in such a manner as the said AB may direct and in case he is not able to give any directions the said income shall be spent for the maintenance of the said AB, his wife, his son, his son’s wife and such other members of his family as may for the time being be in existence and dependent on him and on all religious, social and customary needs of the family.
4. After the death of the said AB, the income of the trust property shall be spent for the maintenance of his wife, his son, the said CD, the said CD’s wife and such member or members of his family as may be in existence and on all such religious, social and customary needs of the family as aforesaid.
5. If at any time the trustees find that the income of the trust property is not sufficient for the objects of the trust as hereinbefore recited, they shall be at liberty to raise money by disposing of such stocks, shares or securities mentioned in the said schedule as they may think proper, provided that except in cases of sudden, urgent and unavoidable necessity they shall not be entitled to raise more than rupees ten thousand in any one year by disposing of such stocks, shares or securities.
6. If on account of death or other cause the office of a trustee falls vacant, and the said AB is alive and in proper senses and after his death or if he is not in his proper sense the remaining trustees shall appoint a new trustee or trustees if they so agree unanimously and in the event they cannot agree about the appointment of a new trustee or fail to appoint one within a reasonable time, the court may appoint a new trustee in accordance with the law for the time being in force in this behalf and, in making such appointment, the trustees or the court shall respect the wishes, if any, of the said AB’s wife and the wife of the said CD expressed in this behalf.
Pending the appointment of a new trustee, the remaining trustee shall continue to administer the trust.
7. On the death of both the said AB and his son, the said CD, this trust shall cease and the trust property or such portion of it as may be in existence shall immediately vest in the heirs and legal representatives of the said CD.
8. The said AB hereby expressly reserves to himself the power to revoke or modify any time at his pleasure the trust hereby created, but such revocation or modification will not affect any act already done by the trustees in good faith in due execution of the trust.
In witness whereof the parties have signed this Deed 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 CD, EF and CE the trustees in the presence of: