Transfer to trust

This query is : Resolved

Share Report Follow Query Ask a Query

vijay sharma

vijay sharma (Querist)
Follow

25 August 2015 what is the procedure when an individual want to transfer jewellery and shares to a family trust

vijay sharma

vijay sharma (Querist)
Follow

25 August 2015 pls reply
it is urgent for me

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

02 August 2025 Transferring jewellery and shares to a family trust involves both legal and tax considerations. Here’s a straightforward overview of the typical procedure:

---

### Procedure to Transfer Jewellery and Shares to a Family Trust

#### 1. **Establish the Family Trust**

* A **trust deed** must be drafted, clearly defining:

* The settlor (the person creating the trust)
* The trustee(s)
* The beneficiaries (family members)
* The purpose and terms of the trust
* The trust deed should be executed on stamp paper as per local laws and registered if required.

#### 2. **Transfer of Jewellery**

* Jewellery is a **movable asset**.
* The transfer can be done by:

* **Executing a gift deed** in favor of the trust (if the trust is the beneficiary)
* Or a **transfer deed** depending on trust terms
* The gift deed should mention the description, valuation, and transfer details.
* Get the jewellery **valued** by a registered valuer for documentation and tax purposes.
* If applicable, pay **gift tax** or disclose transfer under Income Tax rules (gift from individual to trust can have tax implications).

#### 3. **Transfer of Shares**

* Shares can be transferred to the trust by:

* **Executing a share transfer form (SH-4)** signed by the transferor.
* The transfer must be approved by the company’s board if shares are in a private company.
* Update the **shareholder register** to reflect the trust as the new shareholder.
* Ensure proper valuation of shares (by a registered valuer) to comply with tax rules.
* File necessary forms with the Registrar of Companies (ROC) if required.

#### 4. **Tax & Legal Compliance**

* Consult a tax expert to handle **gift tax, capital gains tax, and stamp duty** implications.
* Disclose transfer in income tax returns as per provisions of **Income Tax Act**.
* Maintain proper documentation to substantiate the transfer for future reference.

---

### Summary Table:

| Step | Action Required | Documents Needed |
| ------------------ | -------------------------------------- | ------------------------------------------------------- |
| Create Trust | Draft and execute trust deed | Trust deed on stamp paper |
| Transfer Jewellery | Gift deed/transfer deed + valuation | Gift deed, valuation report |
| Transfer Shares | Share transfer form + company approval | Share transfer form, board resolution, valuation report |
| Tax Compliance | Consult tax advisor + file returns | Tax filings, valuation reports |

---

If you want, I can help draft a sample **gift deed** or **share transfer form** or guide you through the tax aspects! Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now