specimen of Specific Private Trust

THIS INDENTURE made at Bombay the ____ day of _________ 1999 One Thousand Nine Hundred and Ninety Nine (1999) between Smt. A , resident of Bombay hereinafter referred to as the “Settlor” of the one part, and (1) Shri A,  (2) Shri B  and (3) Shri C, , hereinafter called “the Trustees” of the other part.
WHEREAS the Settlor is absolutely seized and possessed of and otherwise well and sufficiently entitled to an amount of rupees _____________________ only which amount is hereinafter referred to as ‘the said amount’; and 
WHEREAS the Settlor is desirous of settling the said amount for the benefit of certain persons mentioned hereinafter (and referred to as the said beneficiaries) in the manner and subject to the provisions declared hereinafter; and
WHEREAS for the purpose of effecting such desire the Settlor has handed over the said amount by issuing a cheque drawn in favour of the Trustees on __________ Bank to the Trustees intending that the said amount and future income thereof shall be held by the trustees upon the Trust and subject to the powers and provisions hereinafter declared of and concerning the same which the trustees have agreed to do.
NOW THIS INDENTURE WITNESSETH :
1.	For effectuating the settlement the Settlor doth hereby transfer and assign unto the trustees all the said amount and his / her beneficial interest in the said amount to have and to hold the same and the income thereof upon the trust and for the purposes hereinafter declared of and concerning the same.
2.	For the consideration aforesaid, the trustees hereby covenant with the Settlor, that they the Trustees and other trustees for the time being shall stand possessed of the said amount and all other assets forming part of the Trust Fund and all income arising therefrom upon the trust and with and subject to the powers and provisions hereinafter declared of and concerning the same.
3.	The Trust hereby established shall be styled as “ABC TRUST”.
4.	It is hereby agreed and declared between the parties of these presents that the trustees shall stand and be possessed of the said amount (and which amount and other assets and shares, stocks and securities and other investments, business and properties and funds which may under the trusts of these presents be substituted or added in the execution of the said trust are herein designated as ‘the Trust Fund’) upon trust to receive the annual or other income thereof and thereout in the first place to reimburse himself or themselves or pay and discharge all the costs and expenses incurred in or about the administration of the trusts of these presents including income-tax and /or other taxes levied upon the trustees and including all outgoings and municipal or other rates assessments and duties and costs of ordinary repairs to any immovable property, if any, forming part of the Trust Fund and subject hereto :-
A. 	UNTIL THE SPECIFIED DAY:
	The Trustees shall pay the residue of such annual or other income to the following beneficiaries in the proportion mentioned against the respective names:-
	(1) 	Miss 	P	1/6
	(2) 	Miss 	Q	1/6
	(3) 	Mr.    	R	1/6
	(4) 	Mr.   	S	1/6
	(5) 	Smt. 	T	1/6
	(6) 	Smt. 	U	1/6
	PROVIDED that with effect from the day of their respective marriage or death (whichever comes earlier) Miss P and Q shall cease to be entitled to receive any payment as aforesaid and their respective share of income shall be paid to the following beneficiaries (or their respective legal heirs) in the proportion mentioned against their respective names:
	(1)	R	..	¼
	(2)	S	..	¼
	(3)	T	..	¼
	(4)	U	..	¼
	PROVIDED further that in the event of death of Shri R, S and / or Smt. T, U the income payable to the deceased shall be paid to his / her legal heirs in accordance with the law of intestate succession applicable to Hindus. In the event of there being no heirs, the share of the deceased shall be divided equally amongst the other beneficiaries.
B.	ON THE SPECIFIED DAY :
	The Trustees shall close the trust and transfer all the assets forming the part of the Trust fund to the following beneficiaries (or their respective legal heirs) in the proportion mentioned against their respective names to be held by them absolutely.
	(1)	R	..	¼
	(2)	S	..	¼
	(3)	T	..	¼
	(4)	U	..	¼
C.  	The expression Specified Day shall in this deed mean the day of death of the last survivor of P, Q, R, S, T, U. Provided that the trustees for the time being in their absolute discretion and by unanimous decision in writing fix any day earlier then the said day to be the Specified day.
5.	The Trust established hereby shall be irrevocable and notwithstanding anything to the contrary contained elsewhere in these presents, no part of the Trust Fund or future income thereof shall be given, lent to or applied for the benefit of the Settlor.
6.	The trustees shall be free to invest all moneys which shall require investment in any manner they may think proper (without being obliged to invest the same in the investments authorised by law for the investment of the trust funds) and to dispose of sell or exchange such investments and other properties both movable and immovable as are forming part of the Trust Fund whenever they in their absolute discretion think it desirable to do so. And without prejudice to the generality of the foregoing powers, the trustees may invest any moneys requiring investments:
i. 	in the purchase of any immovable property situated in India or elsewhere (and for the development thereof the trustees may borrow moneys at such interest as they may think fit for the purpose without security or on security of the Trust Fund or any property forming part of the Trust Fund) or 
ii. 	in the purchase of or subscription to debentures, stocks, funds, shares and securities of any company or corporation whether incorporated in India or elsewhere; or
iii. 	in making loans upon the security of any immovable property or movable property; or
iv. 	in making loans to or deposits with any person, firm or company or corporation; or
v. 	in starting or acquiring any business which may be carried on by the trustees as such trustees for and on behalf of the Trust hereby established either as sole proprietor thereof or in partnership with any other person or persons; or
vi. 	in the purchase of or acquisition of a flat by becoming member of a co-operative society or association of flat owners; or
vii. 	in such other investment of whatsoever nature and wheresoever situate and whether involving liability or not or upon such personal credit with or without security as the trustee shall in their absolute discretion think fit—
	To the intent that the trustees shall have the full and unrestricted power of investing and transposing the investments in all respects as if they were absolutely entitled thereto beneficially.
7.	The trustees are hereby expressly authorised to accept gifts of money and / or property (movable or immovable) for the benefit of this trust from the Settlor and / or other person or persons and such gifts shall be held by the trustees as accretion to or augmentation of the Trust Fund and the moneys or other property received by way of such gift and the future income thereof shall be held on the like trusts in all respects as are herein contained and are applicable to the Trust Fund and income of the Trust Fund shall be subject to the same trust powers and provisions as are contained in these presents and applicable thereto as if such money or property had formed part of the original Trust Fund.
8.	i)	The power of appointing new trustees shall vest with the trustees for the time being;
ii) 	all acts in carrying out these presents if done and carried out by a majority of the trustees for the time being shall be as valid and effectual as if such acts had been done by all the trustees;
iii) 	should any difference of opinion at any time exist between the trustees for the time being in relation to the commission or omission of any act or otherwise, however, in the execution of the trusts of this Deed, the opinion of the majority of such trustees shall prevail provided that in the event of tie between them the Managing Trustees shall have a casting vote in addition to his or her own;
iv) 	A trustee may resign office as trustee by giving notice in writing to his or her co-trustees;
v) 	Without prejudice to the generality of their powers, the trustees shall have power:
a) 	to employ clerks and other employees, agents, brokers, bankers, lawyers, accountants and others at such remuneration as they think fit;
b) 	to delegate any powers to one or more of their body;
c) 	to appoint any one from amongst them as a Managing Trustee with such powers as may be delegated by them;
d) 	to delegate any power as they can lawfully delegate to any person and to execute such power of attorney as they may think fit for the purpose;
e) 	to withdraw, any power or revoke any appointment of any employee or attorneys;
f) 	to let any portion of any immovable property forming part of the trust fund at such rent and for such period and on such terms and conditions as they may think fit and to accept, surrender of any lease;
g) 	to maintain banking accounts in the name of the trust or in the name of any business which the trustees may start or in the name of such one or more of the trustees as they may think fit and to make the account operable by such one or more of them as they may think fit;
h) 	to determine who shall be the first named as regards investments in shares, stocks, debentures, and other securities and other investments;
i) 	to appoint proxy or proxies for voting at any meeting of creditors, contributors, shareholders and others;
j) 	to allow any investments to stand in the name of any bank;
k) 	to borrow money on personal security or on the security of assets forming part of the Trust Fund.
vi) 	Any trustee (other than the Settlor) who being a trustee company or a professional or any firm in which he or she be a partner is engaged or employed in any professional capacity to act for this trust or do any work for this trust may be remunerated out of the Trust Fund or income thereof by the trustees for such professional or other work and such person shall be entitled to charge this trust for any professional services rendered or other work done.
9.	If the trustees hereby constituted or any one of them or any trustee or trustees appointed as provided in this Deed shall die or leave India for more than three consecutive years or desire to be discharged or refuse or become unfit or incapable to act then and in every such case it shall be lawful for the continuing trustee or trustees for the time being (and for this purpose every refusing or retiring trustee shall if willing to act in the execution of this power be considered a continuing trustee) or for the acting executors or executor, administrator or administrators of the last surviving or the continuing trustees to appoint a new trustee or new trustees in the place of the trustees so dying or leaving India or desiring to be discharged or refusing or becoming unfit or incapable to act as aforesaid. And upon every such appointment, the Trust Fund shall (if and so far as the nature of the property and other circumstances shall require or admit) be transferred so that the same may be vested in the Trustees or trustee for the time being and every trustee so appointed may before or after such transfer of the trust fund act or assist in execution of the trust and powers of these presents as fully and effectually as if they had been hereby constituted trustees.
10.	The receipt of the trustees for the purchase moneys of any property hereby authorised to be sold or for any other moneys paid or for any shares, stocks, funds or securities transferred to them shall effectually discharge the person or persons paying or transferring the same therefrom and from being bound to see the application of being answerable for the loss or misapplication thereof.
11.	a)	No trustee purporting to act in the execution of the trusts and powers of these presents shall be liable for any loss unless it is attributable to his or her own dishonesty or to the wilful commission or omission by him or her of any or all which commission or omission is known to him or her to constitute a breach of trust.
b) 	A trustee or trustees of these presents in good faith paying over any moneys under the trust of these presents to his / her or their co-trustees or doing any act facilitating the receipt therefore for the purpose of the trusts of these presents shall not be answerable for the loss or misapplication or non-application thereof.
12.	It shall be lawful for the trustees for the time being of these presents to reimburse themselves or himself or herself and pay and discharge out of the trust properties of all cost, charges and expenses incurred in carrying out these presents or in or about the execution of the trusts or powers of these presents.
13.	The trustee or trustees may deposit all securities or the investments for the time being representing the assets of the trust with any bank for safe custody and for collection of the interest dividends on the said securities or investments and may open current accounts in their or his or her or its name with the same or any other bank.
14.	Any sum or distribution of any capital sum or capital assets and any shares or security received on distribution of any capital sum or capital assets whether by way of bonus or otherwise in respect of any share or security forming part of the assets of the Trust Fund shall be treated as an accretion to the Trust Fund and added to the same and shall not be deemed to be the income.
Subject thereto the trustees’ decision as to whether any sum, assets or share or security received of any share forming part of the Trust Fund should be treated as capital or income shall be final.
IN WITNESS OF WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals the day and the year first hereinabove mentioned.
SIGNED, SEALED AND DELIVERED BY
the withinnamed Settlor
Smt. _____________________
in the presence of :
1.
2.