It is advisable to execute and register deed of trust in favour of brother
2) your parents can be trustees
3) there can be clause regarding appointment of additional trustees
4) trustees can rent properties to generate income for trust
Stamp duty and Trust
We are thinking of creating a trust in the name of our elder brother who is handicapped and would like to transfer a few properties in a trust with parents as the trustees. As the property (located in Maharashtra) would be a gift in the family, what would be stamp duty in this case? What are the pros and cons of a Trust? Once a Trust is created, can the trustees if required in future rent a property and collect rental income or possibly sell one of the properties listed in the trust? Can the trustees nominate additional family members to become trustees in future?
Asked 4 years ago in Property Law
Religion: Christian
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8 Answers
1. What will be stamp duty in this case, will it be Rs 200 or will it be a certain percentage of the property market value. 2. The stamp duty for blood relative is Rs 200 in maharashtra. Is this also applicable if I would to gift a property to my parents?
Asked 4 years ago
In case executed fir charitable purposes
2% of the sum settled or market value of the property
ii) in any other case where there is disposition of property
Same as on a conveyance on the amount settled or market value of the property
b) where there is no disposition of property
₹ 500
In case you gift property to parents
stamp duty would be 3 per cent of market value of property
1. Stamp duty differs in every state and varies with nature of deeds. So contact the registration office to know the stamp duty.
2. Yes.
Hi, you can create the trust in the name of the elder brother and it is better you can register it and once you register the same thereafter you can transfer the property in the name of the Trust.
[2] President in the trust has power to appoint the trustee and you must mentioned in the trust deed what is the criteria for appointing trust.
It will be percentage of property.
Yes it will be only for blood relative
1) Once trust is formed trustee can enjoy the property rights according to agreement or MoU terms and conditions.
2) You have to pay stamp duty and registration charges according to current ready reconker property price.
The Trust creator, sometimes known as the ‘Grantor’ or ‘Settlor’, is the person who started out as the owner of the property that is to be transferred to and held by the Trust.
The Trustee is the person or financial institution (such as a bank or a Trust company) who holds the legal title to the Trust estate. There may be one or more trustees. The trustee is obligated to act in accordance with the terms of the Trust for the benefit of the Trust beneficiaries.
The beneficiaries are the persons who the Trust creator intended to benefit from the Trust estate. The rights of the beneficiaries depend on the terms of the Trust.
A person may set up a private trust under a written instrument; that is, either through a will (testamentary trust) or through a written trust deed during the person’s lifetime. A trust having immovable property and created through a non-testamentary instrument has to be declared through a registered written instrument (section 5 of the Indian Trusts Act 1882).
The stamp duty for transfer by gift deed to trusts would be applicable according to the nature of trust i.e., whether charitable or non charitable.
The deed needs to be stamped with appropriate non judicial stamp which depends upon the value of the property.
A family trust set up to benefit members of a family is the most common purpose for a private trust. The purpose of the family trust is for the settlor to progressively transfer his assets to the trust, so that legally the settlor owns no assets himself, but through the trust, beneficiaries get the benefit of these assets.
every person capable of holding property can become a Trustee;
With most trusts, the beneficiaries are entitled to a certain proportion of the trust income, depending on the terms of the trust. They may receive a monthly allowance or receive the money when they reach a certain age. Because of this, the beneficiaries are considered beneficial owners.
1. The deed needs to be stamped with appropriate non judicial stamp which depends upon the value of the property.
2. According to Article 34 of the Maharashtra Stamp Act, which was revised in 2017, stamp duty on gift deeds is 3 per cent of the property value. But, if the property is residential or agricultural, and is gifted without any payment to a blood relative, then the stamp duty is Rs 200