A trustee is a person or an entity created and entrusted with property to deal with for the benefit of certain person or persons called beneficiaries. A trust is created by means of written document known as trust deed. The trust deed contains important details. Object of the trust, Names of trustees and power vested with them, The Beneficiaries and terms and conditions to administer the trust property. The person who transfers his property to the trust is called “settler” or “author of Trust”. A trust can be formed for charitable or religious or educational or scientific purposes. The Trust formed for the promotion of public welfare is called Public Trust. The Trust which is created for charitable purpose is called a charitable trust. A trust created for the benefit of specified /definite ascertainable individuals is called private trust. The privileges and tax benefits that are enjoyed by the public trusts or NGOs are not enjoyable by these private trusts. The Certified copy of the Trust Deed document is generally required for opening a Trust account in the banks, if there is no Trust Deed, a certified copy of the order from a competent Court in this regard to be submitted. As branch officials may not be aware of complications in opening Trust accounts, permission of administrative office is required in many banks to open trust accounts.The legal department of administrative office will scrutinise the trust deed or order of competent court and then permit the branch to open the account to avoid any complication in future.
Trust accounts must be opened and led entirely as per the terms of the trust deed. Every one of the trustees is required to act jointly with the persons so approved by the enrolled trust deed. Trustees have no forces to delegate their power to one or more unless the force of appointment is approved by the trust deed or is as per the bearings of the court on an application made by the trustees. The trustee should be stationed within the jurisdiction of the court where the trust is located. But where the trust property is a movable asset, the trustee need not be stationed within any single jurisdiction.
For KYC purpose folowing documents are required;
1. Copy of the Trust deed,
2. Registration certificate of the Trust,
3. If the Trust is not registered, PAN Number/Acknowledgement copy of Income Tax return,
4. Certified copy of the resolution regarding opening and operation of the account.
5. Details of all the present trustees, settlers, beneficiaries and signatories with their identity and address proof,
6. Copy of power of attorney granted to any employees to transact business of the trust.
7. Registered & communication address of the Trust with Telephone/fax number/e-mail address.
While opening opening Current Accounts of all categories of depositors including proprietor, partners, trustees, settlers, beneficiaries and those holding power of attorney, founders, managers, directors etc.the customers needs to submit ‘know your customer’ related official valid documents of the entities and natural persons behind the entities. As per RBI guidelines, in addition to seeking NOC from the existing bankers of the prospective current account customer, banks should seek information from CRILC and verify the data received from the CRILC, whether the prospective customer is enjoying credit facilities from another bank. Also, banks have to seek ‘No Objection certificate’ from the drawee bank where the initial deposit to current account is made by way of a cheque.