A trust can be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of the general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.
What is the main purpose of a trust?
A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.
Generally, the Trust is registered at the Registrar office of the state/ area under whose jurisdiction the official address of the Trust comes. However, please note that the office address of the Trust is not counted among the Trust’s property.
Is it compulsory to register a trust?
Registration of a trust is not compulsory if a private Trust declared by a WILL even if it involves immovable property. In case of Public Trust, whether in relation to movable property or an immovable property and whether created under a WILL or inter vivos, registration is optional.