Trust Deed Format: Contents, Sample Structure, Stamp Duty and Registration Process

A trust deed is the founding document of a trust. It records who is creating the trust, what property is being placed in it, who will manage it, and for whose benefit. Banks, the Income Tax Department, donors and grant-makers will all ask for it, so the wording matters.

This guide explains the clauses every trust deed should contain, gives a sample structure you can adapt, and covers stamp duty and registration. It is useful for founders setting up a charitable trust, families creating a private trust, and CSR or NGO teams reviewing an existing deed.

Quick answer: A trust deed format includes the title and date, details of the settlor (author), the trust name and registered office, the objects, the initial trust property, the trustees and their powers, rules for appointment and removal of trustees, meetings, accounts and audit, amendment and dissolution clauses, and signatures of the settlor, trustees and two witnesses. It is executed on stamp paper as per state law and registered with the sub-registrar.

Types of Trust and Governing Law

The Indian Trusts Act, 1882 does not apply to public charitable trusts, which is why public trusts follow state laws and court precedents. The deed format is similar, but the objects and governance clauses differ.

Contents of a Trust Deed

1. Title and date

"Deed of Trust" or "Trust Deed", with the date and place of execution.

2. Settlor (author of the trust)

Full name, parentage, age, address and PAN of the person creating the trust.

3. Name of the trust

A unique name. Avoid names suggesting government links or using restricted words without approval.

4. Registered office

Full address. You can include a clause allowing the trustees to shift the office within the same state.

5. Objects of the trust

The most important clause. Write specific, lawful objects, such as "to establish and run schools for underprivileged children" or "to provide free medical camps in rural areas". Vague objects create problems when applying for 12AB and 80G registration.

6. Initial trust property (corpus)

The amount or asset settled at creation, for example "₹11,000 settled in cash" or details of land. Trusts involving immovable property must describe it fully.

7. Trustees

Names, addresses and PAN of the first trustees, number of trustees (minimum and maximum), and who is the managing trustee or chairperson.

8. Powers and duties of trustees

Opening and operating bank accounts, accepting donations, buying and selling property, investing funds, hiring staff, and entering into contracts.

9. Appointment, resignation and removal of trustees

How vacancies are filled, the tenure of trustees, and grounds for removal.

10. Meetings and decision-making

Frequency of meetings, quorum, voting rules and the process for written resolutions.

11. Accounts and audit

Financial year, maintenance of books, and annual audit by a chartered accountant.

12. Application of income

For charitable trusts: income and property to be applied only towards the objects, with no part distributed to trustees or the settlor. This clause is essential for income tax exemption.

13. Amendment clause

Whether the deed can be amended, and by what majority. Some objects (such as the charitable nature) should be made unamendable.

14. Dissolution clause

For charitable trusts: on dissolution, remaining assets go to another trust with similar objects, never to trustees or private persons.

15. Signatures and witnesses

Signed by the settlor and trustees, with two witnesses giving their names and addresses.

Charitable Trust Deed Format (Sample Structure)

DEED OF TRUST

This Deed of Trust is executed at [City] on [Date] by [Settlor's name], son/daughter of [Parent's name], aged [age], residing at [address], PAN [PAN] (hereinafter called "the Settlor").

WHEREAS the Settlor desires to create a public charitable trust for the objects set out below, and has set apart a sum of ₹[amount] as the initial corpus;

NOW THIS DEED WITNESSES AS FOLLOWS:

1. Name: The Trust shall be called "[Trust name]".

2. Office: The registered office shall be at [address], which may be changed by the Trustees within [State].

3. Objects: The objects of the Trust shall be: (a) [object 1]; (b) [object 2]; (c) [object 3]. The Trust shall work without distinction of caste, creed, religion or gender.

4. Trust Fund: The initial corpus of ₹[amount], together with donations, grants and income, shall constitute the Trust Fund and be applied solely for the objects.

5. Trustees: The first Trustees shall be: (i) [name, address, PAN] — Managing Trustee; (ii) [name, address, PAN]; (iii) [name, address, PAN]. The number of Trustees shall not be less than [3] and not more than [11].

6. Powers of Trustees: [Banking, accepting donations, investments as permitted under Section 11(5) of the Income-tax Act, acquiring property, employing staff, etc.]

7. Meetings: The Trustees shall meet at least [twice] a year. [Two-thirds] of Trustees shall form the quorum.

8. Accounts: The financial year shall be 1 April to 31 March. Accounts shall be audited annually by a Chartered Accountant.

9. Application of Income: No part of the income or property shall be paid to or applied for the benefit of the Settlor, Trustees or their relatives, except reasonable reimbursement of expenses.

10. Amendment: Clauses may be amended by a [two-thirds] majority of Trustees, but the charitable nature and Clause 9 shall not be altered.

11. Dissolution: On dissolution, assets shall be transferred to another trust with similar objects registered under Section 12AB.

IN WITNESS WHEREOF the Settlor and Trustees have signed this Deed on the date first written above.

Settlor: _______ Trustees: _______ _______ _______ Witnesses: 1. _______ 2. _______

This is a simplified structure for understanding. Adapt the objects, powers and governance to your situation, and have the final deed reviewed by a lawyer before execution.

Trust deed format in Word

You can copy the structure above into a Word document. Replace every bracketed field, number the clauses, and print on stamp paper (or attach an e-stamp certificate) of the required value.

Private Trust Deed Format: Key Differences

1. Beneficiaries must be identified by name or class (for example, "the children of the Settlor").
2. Include distribution rules: when and how much each beneficiary receives.
3. Include a duration clause, as private trusts cannot last indefinitely under the rule against perpetuities.
4. No income tax exemption under Sections 11 and 12; the trust is taxed under the rules for private trusts.

Stamp Duty on Trust Deed

Stamp duty is a state subject, so rates differ:

1. Some states charge a fixed amount for a trust deed.
2. Others charge a percentage of the value of property settled, especially where immovable property is transferred.

Check the current rate under your state's Stamp Act schedule or the e-stamp portal (such as SHCIL) before purchasing stamp paper.

Trust Deed Registration

• Draft the deed and get it reviewed.
• Pay stamp duty through e-stamp or physical stamp paper.
• Book an appointment with the sub-registrar having jurisdiction over the registered office (online booking is available in many states).
• Appear in person: the settlor, at least two trustees (as required locally) and two witnesses, with original ID and address proofs.
• Pay the registration fee under the Registration Act, 1908 (state-specific).
• Collect the registered deed after the sub-registrar records it.

Registration is compulsory where the trust involves immovable property. For other trusts, it is strongly recommended because banks and the Income Tax Department ask for a registered deed.

After registration

1. Apply for the trust PAN.
2. Open a bank account in the trust's name.
3. Apply for provisional registration under Section 12AB and approval under Section 80G through Form 10A on the Income Tax portal.
4. Register on NGO Darpan if you plan to seek government grants.

Read our complete charity trust registration guide.

Common Mistakes

Vague objects. "Social welfare" alone is too broad; describe specific activities.

Allowing benefit to trustees. Clauses permitting distribution to trustees jeopardise tax exemption.

No dissolution clause. This is a frequent reason for 12AB objections.

Mixing private and public purposes. A trust that benefits both family members and the public faces tax complications.

Frequently Asked Questions

1. What is a trust deed? The legal document that creates a trust, recording the settlor, trust property, objects, trustees and rules of management.

2. Is registration of a trust deed compulsory? It is compulsory when immovable property is involved. Otherwise it is recommended, as banks and tax authorities require a registered deed.

3. How many trustees are required? There is no fixed national minimum for public trusts, but at least two or three trustees are commonly required by sub-registrars and are advisable for governance.

4. How much is stamp duty on a trust deed? It varies by state and sometimes by the value of property settled. Check your state's Stamp Act schedule.

5. Can a trust deed be amended? Yes, if the deed contains an amendment clause. The amendment deed should be registered, and the Income Tax Department informed if the trust holds 12AB registration.

6. Can I use a trust deed format from the internet? You can use it as a starting point, but tailor the objects and clauses to your trust and have a lawyer review it.