Trust registration has become a complex process needing expert guidance and the legal document on which the registration of trust is signed is called a trust deed. Trust deed must be executed on an appropriate non-judicial stamp paper. Two types of trust are present and they are as follows:
1. Public trust:
A charitable trust or public trust is created by keeping the general public in mind.
2. Private trust:
When a particular group of individuals signs a trust deed for their benefits then it is called private trust.
The following are the important characteristics of a Trust deed:
- Minimum 2 persons are required to form a trust but there is no upper limit.
- Trust deed must contain the aims and objectives behind the registration of the trust. It should also mention the mode of management of the trust.
- No election is required for the appointment of board changes.
- The chances of dissolving trust are meager.