A Bare Trust Deed is essential when establishing a simple trust structure under Indian law where assets need to be legally held by trustees for beneficiaries who retain absolute beneficial ownership and control. This document is commonly used in family wealth planning, property holding arrangements, and situations requiring nominal ownership separation from beneficial ownership. The deed must comply with the Indian Trusts Act 1882 and related legislation, including registration requirements under the Registration Act 1908 when involving immovable property. It's particularly useful for straightforward trust arrangements where beneficiaries are adults with full capacity and want complete control over trust assets while maintaining legal title in trustees' names. The document typically includes detailed schedules of trust property, beneficiary rights, and trustee powers, though trustees' duties are minimal compared to discretionary or complex trusts.
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1. Parties: Identifies the Settlor, Trustee(s), and Beneficiary(ies) with their full legal names and addresses
2. Background: Explains the context and intention to create a bare trust, including the settlor's wish to transfer assets to trustees to hold for beneficiaries
3. Definitions: Defines key terms used throughout the deed including 'Trust Property', 'Trust Period', 'Bare Trust', etc.
4. Declaration of Trust: Formal declaration creating the trust and specifying its bare trust nature
5. Trust Property: Describes the assets being placed in trust and confirms their transfer to the trustees
6. Trustee Powers and Duties: Specifies the limited role of trustees in a bare trust - holding legal title and acting on beneficiary instructions
7. Beneficiary Rights: Confirms absolute beneficial ownership and right of beneficiaries to direct trustees
8. Trust Period: Specifies the duration of the trust
9. Governing Law: Confirms the deed is governed by Indian law
10. Execution: Space for parties to execute the deed with witnesses
1. Trustee Retirement and Appointment: Include when mechanism for trustee changes needs to be specified
2. Administrative Provisions: Include when specific administrative procedures need to be documented
3. Trustee Indemnity: Include when additional trustee protection is required beyond statutory provisions
4. Bank Mandate: Include when trust property includes bank accounts requiring specific management provisions
5. Minor Beneficiaries: Include when any beneficiaries are minors at trust creation
6. Dispute Resolution: Include when specific dispute resolution procedures are desired
1. Schedule 1: Trust Property: Detailed inventory and description of all assets placed in trust
2. Schedule 2: Beneficiary Details: Full details of beneficiaries including shares/entitlements if multiple beneficiaries
3. Schedule 3: Trustee Powers: Comprehensive list of specific powers granted to trustees
4. Appendix A: Trust Property Transfer Documents: Copies of transfer documents for trust property
5. Appendix B: Consent Forms: Any required consent forms from relevant parties
6. Appendix C: ID Documentation: Copies of identification documents for all parties
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