Trusts
Trust registration in bihar or formation of trust in
bihar is not very tuff, the process of trust registration in bihar is very easy
. Public charitable trusts can be formed as educational trust or social welfare
trust is distinguished from private trusts, are designed to benefit members of
an uncertain and fluctuating class. In determining whether a trust is public or
private, the key question is whether the class to be benefited constitutes a
substantial segment of the public. There is no central law governing public
charitable trusts, although most states have “Public Trusts Acts.” Typically, a
public charitable trust must register with the office of the Charity
Commissioner having jurisdiction over the trust (generally the Charity
Commissioner of the state in which the trustees register the trust) in order to
be eligible to apply for tax-exemption.
In general, trusts may register for one or more of the
following purposes :
Relief of Poverty or Distress;
Education;
Medical Relief;
Provision for facilities for recreation or other leisure -time occupation
(including assistance for such provision), if the facilities are provided in
the interest of social welfare and public benefit; and The advancement of any
other object of general public utility, excluding purposes which relate
exclusively to religious teaching or worship.
At least two trustees are required to register a public charitable trust. In
general, Indian citizens serve as trustees, although there is no prohibition
against non-natural legal persons or foreigners serving in this capacity.
Legal title of the property of a public charitable trust vests in the trustees.
Trustees of a public charitable trust may not, however, in any way use trust
property or their position for their own interest or private advantage.
Trustees may not enter into agreements in which they may have a personal
interest that conflicts or may possibly conflict with the interests of the
beneficiaries of the trust (whose interests the trustees are bound to protect).
Trustees may not delegate any of their duties, functions or powers to a
co-trustee or any other person, except that trustees may delegate ministerial
acts. In essence, trustees may not delegate authority with respect to duties
requiring the exercise of discretion.
Trustees of religious or charitable trusts are charged with discharging their
duties with the degree of care that an ordinarily prudent person would exercise
with respect to his personal property. This is a slight variant on the duty of
care applicable in many U.S. jurisdictions, which requires directors and
officers to act with the degree of diligence, care and skill that ordinarily
prudent persons would exercise under similar circumstances in like positions
(as opposed to in the management of their personal affairs). Public charitable
trusts are highly regulated. For instance, in many states, purchases or sales
of property by a trust must be approved in advance by the Charity Commissioner.
Indian public charitable trusts are generally irrevocable. If a trust becomes
inactive due to the negligence of its trustees, the Charity Commissioner may
take steps to revive the trust. Furthermore, if it becomes too difficult to
carry out the objects of a trust, the doctrine of cy pres, meaning “as near as
possible,” may be applied to change the objects of the trust. Thus, it appears
that grantors can feel fairly secure that the charitable nature of a trust will
be honored, even if the original, specific purposes of the trust cannot be
carried out.
Process of trust
registration in bihar :
- Ø Committee of minimum three person
- Ø Address proof of all person
- Ø Name of the Trust
- Ø Address of the trust
- Ø Total Duration in registration : one day
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