How to Register a Trust Deed
A trust is a legal relationship that exists between the trust creator, the trustee, and the beneficiary. In a trust, the trustee is legally required to hold the property for the benefit of the beneficiary or for another purpose authorized by law. There are several forms of trusts: public/charitable trust and private trust; executed and executory trust; express and implicit trust; and resultant or constructive trust. A private trust must be constituted and formed in Bangladesh under the Trust Act of 1882.
What Exactly Is A Trust Deed?
A trust deed is a legal document that serves as an agreement between the trust’s originator and the trustee. It establishes the criteria, terms, and procedures for establishing and operating the trust. This trust deed serves as a guide for how the trust will be run and how the trustees will distribute rewards to the beneficiaries.
how to register a trust deed
The Provisions of a Trust Deed
A trust deed must be written in well-defined terms and include the following provisions:
- Author/creator and trustee information
- With clarity and certainty, the object of faith,
- Beneficiaries’ information,
- How the trust will be run,
- Financial administration of the trust, as well as the option to dissolve the trust.
The procedure for registering a trust deed
The registration of a trust is determined by the sort of property subject to the trust. Registration for a trust of moveable property is not required under Section 5 of the Trust Act of 1882, whereas registration for a trust of immovable property is. So, in order to register a trust deed, the following issues must be addressed:
Step 1: Appropriate authority for trust deed registration
A trust deed, like a land document, can be registered in the local Sub-Registrar’s office. The trust deed for immovable property must be presented for registration in the office of the Sub-Registrar where the immovable property is located, according to Section 28 of the Registration Act, 1908. On the other hand, the trust deed for moveable property may be registered where the trust’s activities will be carried out or where the trust’s registered office is located.
Step 2: Fees for Registration
The fees for registering a trust deed can be found in the Gazette under No.- S. R. O. No. 254-Law/2014, which was created in accordance with Section 78 of the Registration Act, 1908 by the Law and Justice Division of the Ministry of Law, Justice, and Parliamentary Affairs. According to Article A (1) of the Gazette, where the trust value does not exceed BDT 5,000/-, the charge is 2% ad valorem, with a minimum of taka 100/-. If the trust value exceeds BDT 5,000/-, a fee of 2% of the amount will be charged as a registration fee.
Step 3: Stamp Duty
Schedule I of the Stamp Act of 1899 contains the stamp duty for trust deeds. The stamp duty on the trust deed shall be 2% of the consideration, according to serial no. 64 of Schedule I.
Step 4: Sign the deed
The author/creator and trustee must sign the trust deed in front of the registering officer. Furthermore, the trust’s authors must sign and place their fingertip on the register book in front of the registering official. Following that, 2(two) witnesses must sign on the last page of the trust deed in front of the registering officer.
Step 5: Submit an application for a certified copy.
The trust’s author/creator must complete and sign a special form that must be submitted to the sub-registrar’s office in order to obtain a certified copy of the registered trust deed.
Receipt pursuant to Section 52(1)(b):
After fulfilling all of the aforementioned processes and submitting the document to the registration officer, as per Section 52(1)(b) of the Registration Act, 1908, the registering officer shall issue a receipt for such document to the person presenting it. This receipt must be presented in order to obtain the original copy of the registered trust deed from the relevant Sub-Registrar’s office.
SERVICE PERIOD TO REGISTER A TRUST DEED:
In general, the registration process can take 7-10 (seven to ten) working days. However, depending on the conditions, the period of services may vary.