PRIVATE TRUST
Trusts can be categorized as either private or public under the Indian Trusts Act of 1882 based on their characteristics and objectives.
Public Trusts: Public trusts are established for the benefit of the entirety of the public or a specific segment of it. Temples, schools, hospitals, and orphanages are just a few examples of the philanthropic or religious uses for which they are typically constructed. A board of trustees oversees the management of public trusts and is in charge of carrying out the trust’s goals and ensuring effective administration.
Private Trusts: Private trusts are established for specific people or families’ benefit. They are typically set up to give beneficiaries—like young children, people with disabilities, or elderly parents—financial stability or support. Two subcategories can be used to further classify private trusts:
1. Trusts for particular purposes: These trusts are established with a specific goal in mind, like the upkeep of family property or a child’s education.
2. Trusts established for the benefit of particular people: These trusts are established for the benefit of particular people, including a spouse, kids, or other relatives. They can be established as inter-vivo trusts, which are established while the settlor is still alive, or testamentary trusts, which are established in a will.
What Assistance Can Popli and Associates Provide?
For managing many facets of a private trust, Popli and Associates can be a reliable consultant. Depending on a private trust’s demands and specifications, our services may differ. The following are some of the services that Popli and Associates offer:
Trust Formation: By drafting the required paperwork, including the trust deed, and advising the trustees on the trust’s tax and legal ramifications, we can assist in the establishment of a private trust.
Accounting and Bookkeeping: We can assist in keeping the trust’s books of accounts up to date and making sure they adhere to all applicable rules and legislation.
Tax Planning: We can assist the trustees on tax planning techniques to reduce tax obligation by allocating income among beneficiaries and employing tax-efficient investment strategies.
Business Succession Planning: One instrument for business succession planning is a private trust. An individual can make sure that their firm is efficiently and smoothly passed on to their intended successors by putting business assets to a trust.
Tax Compliance: We can help you file your income tax, GST, and TDS returns, among other tax returns.
Investing Management: We can offer guidance on risk management, diversification, and tax-efficient investing techniques for the trust’s assets.
Trust Administration: A certified public accountant can help the trustees with a number of administrative duties, including keeping track of documents, overseeing adherence to the law, and corresponding with beneficiaries.
Audit and Assurance: To make sure the trust’s financial accounts are correct and adhere to all applicable rules and regulations, our company can do an audit of them. Additionally, they can offer the trustees assurance services on a range of financial issues.