A family trust is a private trust you set up for the people closest to you. Families come to us to plan succession, to provide for a child with special needs, or to pass wealth down without it fracturing across the generations. It runs under the Indian Trusts Act 1882, working through your lifetime and continuing after it. Our services cover guidance on the Trust structure, the twelve essential clauses, the stamp duty, and the Sub-Registrar visit.
The parent or grandparent who creates the trust and settles family assets into it.
A trusted family member or professional who manages the trust property under fiduciary obligation.
Receives the benefit of the trust property as the settlor directed.
India's trusted succession planning platform
Speak with a senior estate planning expert. Nominally priced 30-minute consultation to scope your family situation at ₹1999, identify revocable vs irrevocable need, and recommend the cleanest structure.
Whether you're protecting your family, planning business succession, or creating a lasting charitable legacy, we'll help you choose the trust that best fits your goals.
You are here. Designed for families to preserve and transfer wealth across generations. Ideal for succession planning, protecting minor children, caring for dependants with special needs, managing family assets, and avoiding inheritance disputes.
Current pageStructured for business and commercial objectives beyond traditional family succession. Ideal for holding promoter shareholding, business succession planning, employee welfare arrangements, asset protection (where legally appropriate), and managing investments and business assets.
View Private Trust →Designed for individuals or families wishing to create a lasting charitable or philanthropic legacy. Suitable for educational initiatives, healthcare, religious purposes, public welfare, NGOs, and charitable activities.
View Charitable Trust →Real stories from customers across India who trusted AasaanWill with their estate planning.
1/19
Rahul Banerjee
Rajeev Bhatia
Ravinder Reddy
Mr. & Mrs Sreenivas
Ravinder Reddy
N.S.Jaykumar
Rajeev Bhatia
Sreenivas
Mr Skand Bali
Sudeep Sharma | Jaipur
Suresh Babu - Customer Testimonial
Vigie Fernandes
MSR Chowdary
Rajgopalan Sheshan - Testimonial
Soma Raju | Hyderabad
Shyam Sunder - Our customer's testimonial
Kranthi Kumar | Hyderabad
Sunita Arora | Delhi
Siva | Hyderabad
A family trust is a private trust under the Indian Trusts Act 1882, drafted for the people in your family, whether that is a spouse, your children, your parents, or your grandchildren. You, the settlor, move assets into the trust. A trustee then holds and manages them, and your family receives the benefit on the terms you have set out.
What a trust really does is split ownership in two. The trustee holds the legal title, while your family holds the benefit. You write the terms into a trust deed, and the trustee is bound by law to follow them rather than their own judgement.
For the trust to hold up under Section 6 of the Indian Trusts Act, four things have to be clear: that you intend to create a trust, what its purpose is, who the beneficiaries are, and which property it holds. Leave any one of them vague and the trust can fail for uncertainty.
A trust is not a separate legal person the way a company is, yet for income tax it has its own PAN and files its own return. That mix of informality and real standing is what makes a family trust so useful, whether you are planning succession, protecting assets, or caring for a dependant who cannot manage money on their own.
Governing Law: Indian Trusts Act 1882 (Section 3 definition, Section 6 elements, Sections 11-30 trustee duties, Sections 55-69 beneficiary rights, Section 14 perpetuity). Registration Act 1908 (mandatory for immovable property). State Public Trust Acts (Bombay Public Trusts Act 1950 etc. for charitable trusts). Income Tax Act 2025 Chapter XVII-B (Sections 332-355 for RNPO).
A Will distributes assets at death. A family trust manages assets during your lifetime and after, with the conditions, control, and continuity that a Will alone cannot give.
A child or family member who cannot manage finances independently. A discretionary family trust, structured as irrevocable, ensures lifelong care without exposing assets to misuse and without disqualifying them from government schemes.
Assets meant for children, grandchildren, and beyond. A family trust holds wealth across generations without fragmenting through repeated inheritance cycles, and without each generation triggering fresh probate or mutation.
Where you want to provide for a current spouse during their lifetime and pass assets to children from an earlier marriage afterwards. A determinate family trust ringfences this intention against post-death disputes.
Promoter shares or family business equity held in a family trust avoid fragmentation when multiple legal heirs would otherwise inherit fractional stakes. The trust holds the shares as a single block, governed by the trust deed.
Shielding inherited or self-acquired wealth from a child's future divorce claim, business creditor, or unforeseen litigation. An irrevocable family trust achieves legal separation while keeping benefit within the family.
Settlor in India, children spread across the US, UK, Australia, and Singapore. A family trust simplifies cross-border succession under FEMA, avoids multi-jurisdiction probate, and gives one coordinated structure to govern the assets.
Family trust is a sub-type of private trust under the Indian Trusts Act 1882. The structure splits into revocable or irrevocable, and discretionary or determinate. Here is the full picture.
A family trust can be revocable or irrevocable. The beneficiary structure can be discretionary or determinate. Each combination has different tax and protection implications. We walk you through the choice at the intake call.
The settlor retains the right to cancel the trust and reclaim assets at any time. Section 61 of the Income Tax Act clubs the trust income with the settlor's income. Useful for flexibility during the settlor's lifetime, less useful for asset protection.
The settlor cannot cancel the trust or reclaim the assets. Trust files its own ITR with a separate PAN under Section 161 ITA. This is the right structure for special needs care, asset protection, and most multi-generational planning.
The trustee has discretion over how much each beneficiary receives, when, and on what conditions. Beneficiary class is named (e.g., “my lineal descendants”) rather than fixed shares. Useful for special needs, education funds, and flexible care.
Each beneficiary's share is fixed in the trust deed. Less flexibility but more predictability. Beneficiaries are taxed at their slab rate under Section 161 ITA. Good for second-marriage planning and clear inheritance arrangements.
Parents of a child with autism, cerebral palsy, an intellectual disability, or another lifelong condition tend to carry the same worry: who will look after the child, financially, once the parents are no longer there. For most of these families, a well-drafted irrevocable and discretionary family trust is the answer they arrive at.
It really comes down to three decisions, and we take you through each one.
Trustee selection. Most families name a sibling or a close family friend as primary trustee, with a professional trustee or institution as alternate. The trustee's job is not just to write cheques. They make discretionary decisions about care, accommodation, therapy, and quality of life over decades.
Letter of wishes. Alongside the legally binding trust deed, we draft a non-binding Letter of Wishes that explains your child's history, routines, preferences, and care needs. It guides the trustee in the discretion the trust deed gives them. The deed gives the structure. The Letter gives the voice.
Funding pattern. A modest corpus at registration, followed by structured top-ups through your lifetime via gift deeds, insurance proceeds, and a Will-based bequest of residual assets. The trust grows alongside your child's needs.
A family trust deed missing any of these can fail for uncertainty under Section 6 ITA, violate the perpetuity rule under Section 14, or expose the family to tax surprises. Our drafts include all twelve, in every family trust.
Full name, address, PAN of the settlor. Declaration of competence to contract under Section 7 ITA. Clear intention to create the trust.
Names and addresses of at least 2 trustees (best practice). Acceptance of trusteeship. Procedure for trustee succession and removal.
Specific named beneficiaries (determinate) or a defined class of beneficiaries (discretionary). Reasonable certainty required under Section 6 ITA.
Detailed description of all trust property: cash corpus, immovable property, securities, business interests. Settlement is irrevocable for many trust types.
Clear statement of trust purpose: family welfare, business succession, charitable mission. Objectives must be lawful and not violate public policy.
Section 14 ITA prohibits perpetuity beyond a life in being plus minority. Trust duration must comply or the trust fails.
Section 36 ITA grants general authority. A trust deed can expand or restrict specific powers: investment, sale, lease, borrowing, delegation.
If revocable, conditions under which the settlor can revoke. Section 61 Income Tax implications: revocable trust income taxed in the settlor's hands.
How and when the trust ends. For charitable trusts, assets must transfer to another RNPO with similar objectives, never to individuals.
Mandatory bookkeeping. Trustees must maintain accounts (Section 28 ITA), audit triggered by income threshold or trust deed terms.
What happens when a trustee dies, resigns, or is removed. Continuity mechanism. New trustee appointment process under Section 60 ITA.
Indian Trusts Act 1882 governs. State-specific provisions apply for charitable trusts. Jurisdiction for dispute resolution specified.
Different structural choices serve different family needs. Here is how a family trust compares with the other common succession and ownership vehicles families use in India.
Most trusts complete formation in 2 to 3 weeks. Charitable trusts add 1 to 3 months for RNPO registration under Section 332 IT Act 2025. Here's exactly what happens.
Choose a unique trust name not conflicting with existing trademarks. The name reflects the trust purpose: family, private, or charitable. Trademark search recommended for charitable trusts.
Custom trust deed drafted with all 12 essential clauses: settlor, trustees, beneficiaries, trust property, objectives, powers, dissolution, and governing law. Tailored to family, private, or charitable purpose.
Settlor (creator) identified and signs. Minimum 2 trustees recommended for continuity and accountability. Trustee acceptance recorded. KYC documents collected.
Trust deed printed on non-judicial stamp paper. Stamp duty varies by state and the nature of the trust and property involved. Both settlor and trustees sign every page.
Trust deed signed by settlor and trustees in presence of 2 independent witnesses. Witnesses sign and provide ID. Best practice: witnesses unrelated to trustees or beneficiaries.
Trust deed registered at local Sub-Registrar office. Mandatory for trusts involving immovable property under Registration Act 1908. Settlor, trustees, and 2 witnesses appear in person for biometric verification.
Trust applies for its own PAN (mandatory for bank account, ITR filing) and TAN (if making payments subject to TDS). Form 49A submitted with registered trust deed.
Charitable trusts apply for RNPO registration under Section 332 IT Act 2025 via Form 10A (provisional, 3 years) or Form 10AB (regular, 5-10 years). Required for tax exemption and 80G donor benefit.
Unlike standard legal documents, no two trusts are alike. After an initial consultation, we provide a detailed scope of work and a transparent quotation before any engagement begins.
Government duties, stamp duty and registration charges are payable separately at actuals, wherever applicable.
A complete document set speeds up family trust registration. No RNPO documents needed (that is for charitable trusts only). Gather these before our first consultation.
The Indian Trusts Act 1882 codifies the duties of trustees (Sections 11-30) and the rights of beneficiaries (Sections 55-69). A well-drafted trust deed reinforces these and adds custom protections.
The trustee must fulfil the purpose of the trust as set out in the trust deed, with the diligence the deed prescribes.
The trustee must maintain and defend the legal title of the trust against adverse claims or encumbrances.
The trustee must manage trust property as a man of ordinary prudence would manage his own, the foundational fiduciary standard.
The trustee cannot use the position to make personal profit, except as the trust deed permits or for reasonable trustee fees.
The trustee must maintain proper accounts and provide information about the trust to beneficiaries on request.
Subject to the trust deed, the trustee has all powers necessary to execute the trust, including investment, sale, lease, and delegation.
The beneficiary is entitled to the rents, profits, and other benefits arising from the trust property as set out in the trust deed.
The beneficiary can sue for specific performance if the trustee fails to execute the trust according to the terms.
The beneficiary has the right to inspect the trust deed, accounts, and other documents relevant to the trust.
The beneficiary can transfer their beneficial interest, subject to any restrictions in the trust deed.
The beneficiary can apply to court for removal of a trustee who has committed breach of trust or failed in fiduciary duties.
If a trustee buys trust property in breach of duty, the beneficiary can have the transaction set aside and claim the property back.
Most trust disputes and tax complications trace back to drafting gaps, perpetuity violations, or compliance failures. Here are the six issues we watch for most carefully.
“To my children” without naming them, “for the family” without specifying members. Section 6 ITA requires reasonable certainty about beneficiaries. Vague language causes the trust to fail.
What we do: Every beneficiary named with full identification, or class of beneficiaries defined with precision. Future-born descendants explicitly addressed where the trust extends generations.
Section 14 ITA and Section 114 ISA prohibit perpetuity beyond a life in being plus minority. Trusts attempting to lock property forever fail the rule, voiding the offending bequests.
What we do: Trust duration explicitly capped within the perpetuity period. Vesting events specified clearly. Charitable trusts exempt from perpetuity rule, marked explicitly in the deed.
Trust created with only a token ₹1,000 corpus and no plan to fund it. The trust exists on paper but has no assets to administer. Tax authorities may treat it as a sham arrangement.
What we do: Clear corpus strategy: token corpus at registration plus structured asset transfer plan via separate gift deeds or sale deeds. Funding timeline documented.
Trust deed silent on what happens at termination, or charitable trust attempts to transfer residual assets to individual trustees. This triggers cancellation of RNPO status and tax penalties.
What we do: Explicit dissolution clause. For charitable trusts, mandatory transfer to another RNPO with similar objectives. For private trusts, clear residuary beneficiaries named.
No succession mechanism when a trustee dies, resigns, or commits breach. Beneficiaries forced to approach court under Section 73 ITA. Trust administration freezes during disputes.
What we do: Detailed trustee succession protocol. Removal grounds and procedure specified. Power to appoint additional trustees retained by settlor or named persons.
Charitable trust accumulates funds beyond what it applies for charitable purposes. Failure to meet the 85% threshold triggers full taxation of trust income under Section 353 IT Act 2025.
What we do: Annual compliance planning for charitable trusts. Form 9A for permitted accumulation. Activity tracking to demonstrate 85% application. Audit-ready bookkeeping.
*Subject to changes in Income Tax rules and Acts
Trust formation gets more complex when NRI settlors, beneficiaries, or foreign donors are involved. Two distinct compliance frameworks apply.
NRI settlors can create Indian trusts to hold Indian assets and benefit family members across countries. FEMA 1999 governs the transfer of property into the trust, particularly for immovable assets. Repatriation of trust income to non-resident beneficiaries follows FEMA repatriation rules.
Charitable trusts in India that receive foreign donations must register under the Foreign Contribution Regulation Act 2010 (FCRA). FCRA registration is separate from RNPO registration and required for any foreign currency contribution from a foreign source.
Trust creation involves more than drafting a trust deed. It requires careful consideration of legal structure, trustee responsibilities, registration requirements, stamp duty implications, tax frameworks, and practical implementation processes.
Our team supports families and founders through the entire trust planning process, including documentation, registration-related formalities, and compliance considerations under applicable trust and tax laws.
Family situation mapping: Senior expert intake call. Family tree, asset map, beneficiary needs, special-needs considerations.
Structure recommendation: Revocable vs irrevocable, discretionary vs determinate, primary vs alternate trustees. Recommended structure documented.
Family trust deed drafting: All 12 essential clauses customised to your family. Two rounds of revisions.
Letter of Wishes (where relevant): Non-binding companion document for special needs and discretionary trusts.
Stamp duty calculation: State-specific. Cash-corpus strategy to keep duty modest at registration.
Sub-Registrar coordination: Appointment booking, biometric verification support, document handover.
PAN and TAN application: Form 49A filing for the trust, with follow-up until receipt.
Trust bank account guidance: KYC pack walkthrough and bank introduction where helpful.
NRI cross-border support: FEMA-compliant property transfer, NRO/NRE integration, Hague Apostille routing.
Six-month post-registration support: Routine questions and compliance touchpoints included.
A family trust is meant to last thirty years or more. One clause that trips over the perpetuity rule in Section 14, or a trustee succession plan that falls apart at the worst possible moment, can cost a family years of avoidable trouble. Getting those details right is the part we take most seriously.
Our experience across family succession, special needs planning, second-marriage trusts, and multi-generational structures lets us approach each new family case with practical foresight.
Special needs family trusts are our largest single use case. We have drafted them across autism, cerebral palsy, intellectual disability, and chronic medical needs. The Letter of Wishes companion is built in.
Maharashtra, Karnataka, Telangana, Delhi, Tamil Nadu, and every other major Indian state. Cash-corpus strategy applied where it saves duty, transfer-into-trust planning where it does not.
NRI settlor in one country, beneficiaries in three others. FEMA, NRO repatriation, DTAA, Hague Apostille. Time-zone-friendly consultations across 20 plus countries.
Most families need a Will alongside the family trust to handle assets not yet settled into the trust. We draft them as one coordinated estate plan, not three disconnected documents.
Annual reminder to review the Letter of Wishes. Small updates kept friction-free. Material life events flagged for prompt revisions.
Composite scenarios based on real case patterns. Names and specific facts are anonymised. Each illustrates a different family situation and how the trust structure addresses it.
A Mumbai-based couple in their early fifties has an adult son with autism. They draft a discretionary irrevocable family trust with the wife's younger brother as primary trustee and a professional trustee as alternate. The Letter of Wishes runs to 8 pages, detailing routine, therapy, and care preferences. Trust deed registered, PAN issued, and the couple now adds to corpus annually.
A Bengaluru-based promoter holds 38 percent of a closely-held company. He has three children and wants the equity to pass undivided. A determinate family trust holds the shares as a single block, with the three children as fixed-share beneficiaries. Stamp duty optimised by settling shares (not real estate) at registration. Family business voting rights stay coherent.
A US-resident Indian software engineer wants to provide for his retired parents in Hyderabad. He sets up a discretionary family trust, with his sister (resident in India) as trustee. He funds it via NRO transfer and a small property settlement under FEMA Section 6(5). Trust pays parents' monthly expenses, healthcare costs, and household upkeep through the local trustee.
A family trust is a private trust under the Indian Trusts Act 1882 drafted specifically for family beneficiaries such as spouse, children, parents, or grandchildren. The legal structure is the same as any private trust. What differs is the drafting focus: family relationships, succession arrangements, and intra-family considerations are at the centre of the deed.
15 minutes with a senior estate planning expert. We will review your family situation, recommend the right structure (revocable or irrevocable, discretionary or determinate), calculate state-specific stamp duty, and give you a clear timeline before you commit.
30-minute paid discovery call · Senior estate planning expert · No obligation
AasaanWill is a legal documentation service platform and is not a law firm. Trust deeds are drafted by empanelled experts in our network. Content is for informational purposes and not legal advice. © 2026 AasaanWill. All rights reserved.
AasaanWill’s Privacy Commitment to you
We never use your data without your consent, or sell it to a third party.