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What Is a Trust in Bangladesh
A trust is a legal relationship between a trust creator, a trustee and a beneficiary. In a trust, the trustee is compelled in law to hold the property for the benefit of the beneficiary or for a purpose permitted by law. A trust can be classified into various types such as public/charitable trust and private trust; executed and executory trust; express and implied trust; and resulting or constructive trust. In Bangladesh, a private trust shall be formed created and formed under the Trust Act, of 1882.
What Is A Trust Deed
A trust deed is a legal document which is essentially an agreement between the creator of the trust and the trustee. It sets out the conditions, terms and rules for creating and managing the trust. This trust deed works as a direction regarding how the trust will be operated and how the trustees will deliver the benefits to the beneficiaries.
Contents of A Trust Deed
A trust deed has to be drafted with well and clear words along with below contents:
- Details of the author/creator and the trustee,
- The object of trust with clarity and certainty,
- Details of the beneficiaries,
- How the trust will be governed,
- Financial administration of the trust, and
- Option for dissolution of the trust.
The registration process of a trust deed
The registration of a trust depends on what type of property is the subject of the trust. As per Section 5 of the Trust Act, of 1882, registration for a trust of moveable property is not necessary, whereas registration of a trust of immovable property is compulsory. So, to register a trust deed the following matters need to be considered:
A trust deed can be registered in the relevant Sub-Registrar’s office, just like the registration of land documents. As per Section 28 of the Registration Act, 1908, the trust deed for immovable property shall be presented for registration in the office of the Sub-Registrar where that immovable property is situated. On the hand, the trust deed for movable property may be registered where the activities of such trust will be carried on or where the registered office of the trust is located.
Step-2 Registration Fees
The fees for registration of a trust deed can be found in the Gazette being No.- S. R. O. No. 254-Law/2014 which is created in pursuance of the provision of section 78 of the Registration Act, 1908 by the d by the Law and Justice Division of the Ministry of Law, Justice and Parliamentary Affairs. As per Article A (1) of the Gazette, when the trust value does not exceed BDT 5,000/- then the fee shall be 2% ad valorem, subject to a minimum of taka 100/-. If the trust value does exceed BDT 5,000/- then the fee shall be 2% of the value to be given as a registration fee.
Step-3 Stamp Duty
The stamp duty for trust deed can be found in Schedule I of the Stamp Act, 1899. As per serial no.- 64 of Schedule I, the stamp duty for the trust deed shall be 2% of the value of the consideration.
Step-4 Signing the deed
The author/creator and the trustee need to sign the trust deed before the registering officer. In addition to that the authors of the trust need to sign and put his/her fingertip on the register book before the registering officer. Subsequently, 2(two) witnesses need to sign on the last page of the trust deed before the registering officer.
Step-5 application for a certified copy:
The author/creator of the trust needs to complete and sign a dedicated form that needs to be submitted in the office of the sub-registrar for a certified copy of the registered trust deed.
Receipt under section 52(1)(b):
Once completing all the above-mentioned formalities and submitting the document to the registering officer, as per Section 52(1)(b) of the Registration Act, 1908, a receipt for a such document shall be given by the registering officer to the person presenting the same. This receipt shall be required to collect the original copy of the registered trust deed from the relevant Sub-Registrar’s office.
DURATION OF SERVICES TO REGISTER A TRUST DEED:
Generally, the whole registration process may take 7-10 (seven to ten) working days to complete. However, this duration of services may vary for special circumstances.
COUNSELS LAW PARTNERS (CLP) 2022
is a full-service law firm which has been dealing with all types of Deed Registration and relevant works through its competent and experienced lawyers. Therefore, if you need any assistance or consultation, visit us at our office or feel free to contact us at +8801700920980 (WhatsApp) or via Email- info@counselslaw.com.
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