How to create an Educational Trust in India

By Sara . Updated: January 20, 2017
How to create an Educational Trust in India
Image: kaundinyaeducationaltrust

An educational trust is a non – profit organization. Educational trusts specify that the trust funds are solely used for education. It aims for higher academic achievement of all students at all levels especially those students who come from a low income family.

OneHowto has already explained how to volunteer for an NGO in India, but in this article we will gain information about how to create an educational trust in India.

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When an education trust is set up, a trust document is created. In this document the name of a trustee and beneficiaries are named by a grantor. The trust document also specifies as to how the trust money will be used. If the trust becomes operational immediately then the trust is funded by the grantor by transferring property into it. If the trust becomes operational after the grantor’s death then the trust is funded when the grantor dies. When the trust becomes operational, the trustees control the property of trust and according to the terms of the trust, pays for the beneficiary’s education.

How to create an Educational Trust in India - Overview

Creation of Trust

The person who creates the trust is called the Author of the trust or settler or grantor. The person to whom the money and property is transferred is called a Trustee. The person who will be benefitted is called the beneficiary.

Deed of Trust

The trust is a sheet of paper that can be registered for more security, in which the trustee grants a certain amount of money to the beneficiary, whether in life or death. The document created should state and contain five essential things:

  • 1. The Intention of the author to create a trust.
  • 2. State the specific purpose of the trust.
  • 3. State who the beneficiary is.
  • 4. State what is comprised in the trust property
  • 5. Assure the transfer of the property to the trustee

Another option is to leave a clause in your testament that states all these points if you are planning to create the trust after your passing.

Who can create a Trust and who can be Trustee

Any person who is competent to contract can create a trust.

Any individual, corporate sole or corporate body who is capable of holding property and is competent to contract can be trustee.

Duties & liabilities of Trustees

The duties, liabilities and powers of a trustee in general are laid down by the Indian Trust Act, 1882. The duties and liabilities are prescribed in Section 11 to section 30 of the Act.

How to create the Educational Trust

It is best to take legal help while creating the trust. The lawyer will write the educational trust. But if you want to save some money, then educate yourself about the trust before hiring an attorney.

The basic steps which are needed to create a private trust are:

  • Create a trust.
  • Declare a settler of the trust, trustees, beneficiary, place, name of trust, trust property (movable/immovable), objects, accounts, audit, power of trustees etc.
  • Get it registered.

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Write a comment

What did you think of this article?
I want to make a education trust ....I would like to start trust for poor people ....I m also poor people those days I was thinking education trust why because this is my child would dream
OneHowTo Editor
Have you had a look at some of the ideas in the article? Good luck in your endeavor, it is really heartwarming to see people in communities in need coming together to be supportive.
Lalit Mohan Kar
I want create a Trust in the name of my Mother (deceased) to award the student geting 1st position (from Clacss-VI to Class- X) in our Village School. Please advice me.
OneHowTo Editor
Hi Lalit
The first thing we recommend doing is consulting the school on how they, specifically, work with opening trusts.

How to create an Educational Trust in India
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How to create an Educational Trust in India

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