Trusts as a mode of succession and estate planning are becoming popular in India as it is easy to set up, does not attract estate duty, and is flexible to adapt to changing laws and circumstances. 

A private trust is created by a trust deed under the Indian Trusts Act, 1882. There are three stakeholders to a trust viz. The settlor (the person creating the trust), the beneficiary (for whose benefit the trust has been created), and the trustee (appointed by the settlor to administer the trust).

Retaining Trust in a Trustee

On the creation of a trust, the trustee becomes the legal owner of the property. A trustee's responsibilities, are to govern the trust and take care of administrative matters.

The trustee acts for the benefit of the trust and ensures that the trust corpus achieves sustainable returns. 

The trustee's scope of power should be defined by trust. Decision-making can be made unanimously for important decisions of financial matters and others by majority vote. A trust deed also addresses procedures for, decision-making, conducting meetings, and forming committees.

Appointing and Removing Trustees

A trust deed should allow existing trustees to appoint additional ones with decision-making power, ensuring that power is not vested in a single hand.

A specific procedure for the trustee to be removed and for allowing resignation should be provided in the trust deed.

Safeguarding the Trust Corpus

The Trusts Act allows the trustee to invest funds from the trust corpus in specified securities and bonds only. The settlor can specify instruments and cap on investment limit and exempting the trustees from exercising too much discretion.

Conditions may be specified, to trigger the addition or removal of beneficiary from the trust. 

Trust administrator responsibility

An administrator acts as an overseer and is responsible for ensuring due compliance with the law, the trust deed, and the resolutions passed by the trustees. He or she has the best interests of the trust. A trust deed can provide such a person with powers if needed in financial matters.

Revocability of a Trust

If the settlor lays down situations in which the trust property may revert to him/her, the trust can be treated as a revocable trust. 

Dissolving the Trust

A trust is dissolved automatically when the objects of the trust cannot be fulfilled. However, some situations can be included in trust deep for the continuation of the trust. 

The system of setting up a trust is all-powerful. An ideal trust deed has the necessary tools to deal with unforeseen situations and to honor the settlor's wishes.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.