Trust Deed Format

A trust deed is a document that creates a trust and details the roles, duties, and powers of the trustees and beneficiaries. Trust deeds establish the foundation for an organisation to operate a charitable, private, or public trust, in totality. For a deed to be legally valid, it requires certain essential clauses and must have a formal structure.

This blog explains the purpose and importance of trust deeds and provides a complete format that you can use to create a trust in India.

Introduction

In India, setting up a trust is one of the most common legal methods for carrying out charitable activities, managing family wealth, or fulfilling specific social, religious, or developmental goals. A trust can be either private (for specific individuals) or public (for the general public benefit), and it must be backed by a properly executed trust deed.

A trust deed acts as a legal charter. It defines the name of the trust, its purpose, who the trustees are, how the trust will be managed, and how assets or funds will be used. This document must be drafted carefully, as it determines the trust’s structure, control, and legal compliance, especially if you are applying for registration under the Indian Trusts Act, 1882 or seeking income tax exemptions like under Section 12A or 80G.

Why is a Trust Deed Important?

A trust deed is legally binding and –

• Establishes the trust and its objective
• Legally identifies the settlor (creator), trustees, and beneficiaries
• Details how the trust’s property or funds will be managed and used
• Provides governance rules for meetings, decision-making, and dissolution
• It is required for registration of the trust with the sub-registrar
• It is essential for income tax exemption eligibility under Indian law

Without a valid deed, the trust cannot be recognised by law or enjoy tax or legal benefits.

Sample Trust Deed Format – Download Online

TRUST DEED

This Deed of Trust is executed on this [Day] day of [Month, Year] at [City], by –

Mr./Ms. [Settlor’s Full Name], aged about [Age] years, S/o or D/o [Parent’s Name], residing at [Full Residential Address], hereinafter referred to as the “Settlor” (which expression shall, unless repugnant to the context, mean and include their legal heirs, successors, administrators, and assigns).

IN FAVOUR OF

The following individuals, who shall collectively act as Trustees –

1. Mr./Ms. [Trustee 1 Name], aged about [Age], residing at [Address]
2. Mr./Ms. [Trustee 2 Name], aged about [Age], residing at [Address]
3. Mr./Ms. [Trustee 3 Name], aged about [Age], residing at [Address]

(Hereinafter collectively referred to as the “Trustees”, which term shall include any future or additional trustees appointed under the terms of this deed.)

WHEREAS the Settlor has decided to create a public charitable trust for the purposes described herein, and to endow an initial amount of Rs [Amount] as the initial corpus of the trust.

1. Name of the Trust

The name of the trust shall be – [Insert Name of Trust].

2. Registered Office

The trust’s registered office shall be situated at [Full Address], and the trustees may change the address from time to time as needed in accordance with the laws.

3. Objectives of the Trust

The trust shall be operated for charitable and non-profit purposes. The primary objectives will be to promote –

• Promotion of education by establishing schools, colleges, and libraries
• Providing healthcare by setting up clinics, hospitals, and medical aid centres
• Relief of poverty through the distribution of food, clothing, and essentials
• Empowerment of women, children, and socially backwards communities
• Environmental protection and public awareness programs
• Any other charitable purpose as defined under Section 2(15) of the Income Tax Act, 1961

4. Trust Property

The Settlor hereby irrevocably transfers Rs [Amount] to the Trustees as initial trust property. The trust may receive additional contributions from the Settlor, donors, public, institutions, or other legal sources in the form of money, movable or immovable property.

5. Trustees and Their Powers

The trust shall be governed by a minimum of [Minimum] and a maximum of [Maximum] trustees. The present board includes the above-named three trustees.

Trustees shall have the authority to –

• Operate bank accounts in the name of the trust
• Manage movable and immovable assets of the trust
• Appoint staff, advisors, and professionals
• Enter into contracts, agreements, and partnerships for executing trust objectives
• Purchase or lease property in the name of the trust
• Apply for registrations, licenses, and tax exemptions as required
• Maintain books of account and submit income tax filings

Trustees shall act unanimously or by majority, as specified in this deed.

6. Meeting and Quorum

The Board of Trustees shall meet at least once every [Quarter/Six Months]. A quorum for a valid meeting shall be [Specify, e.g., two-thirds of trustees present]. Decisions shall be passed by majority vote unless otherwise specified.

7. Accounts and Audit

The trust will keep proper books of account. An independent Chartered Accountant will be appointed to audit the annual accounts. The financial statement will be presented to the Board and filed with the Income Tax Department if applicable.

8. Bank Operations

The trust shall open and operate a bank account in the name “[Trust Name]” with any nationalized/scheduled bank. The bank account must be operated jointly by any two trustees authorized by a board resolution.

9. Amendment of the Trust Deed

Any clause of this deed may be amended on mutual agreement by all currently serving trustees. No amendment may violate the intent of the trust or charitable scheme or cause the Trust’s charitable registration to be revoked by the appropriate authorities.

10. Dissolution Clause

In the event of dissolution of the trust, all remaining assets, after satisfaction of liabilities, shall be transferred to another charitable trust or institution with similar objectives and duly registered under Section 12A of the Income Tax Act, 1961. Under no circumstances shall any asset be distributed among the trustees or the settlor.

IN WITNESS WHEREOF, the Settlor and the Trustee have set their hands to this deed on the day, month, and year first written above.

[Signature of Settlor]

Name –

Address –

[Signatures of all the Trustees]

Witnesses –

1. Name and Address, Signature
2. Name and Address, Signature

Conclusion

A trust deed is not merely a legal formality; it represents the very foundation of your trust’s operations, existence and the trust’s credibility. All trusts, regardless of whether charitable or merely a family asset pool, must have a trust deed that contemplates the trust’s existence. A carefully drafted trust deed will legally recognise the trust and help ensure the trust’s continuity. For example, a trust deed following the correct format and with all necessary clauses and registered properly will often be enough to hold a trust in good standing and to avoid future litigation and/or disputes and also be able to receive tax deductions, access grants and other funding.

References 

Indian Trust Act, 1882 (Act No. 2 of 1882)