Agreement transferring property in trust for a private company to be formed
Date
____________________________________________________________________________________________
And ______________________________________________________________________________________, the spouse of......., joining spouse provides that..... and....... and...... are owners of interests and properties mentioned in the attached schedules and described as schedules of assets of the respective parties,
WITNESSETH:
1. Because of liens on certain assets, it is necessary to provide for money or credit in order to protect, preserve and realize on them to the best advantage, and..................... and..................... are willing to furnish money and credit to the extent of their personal resources as scheduled and on the conditions set forth.
2. ..................... and..................... are advanced in years and desire to provide for business management of their scheduled assets to the extent and on conditions of trust as set forth, and...... is willing to undertake management on the conditions set forth.
3. The parties are related and desire that..... and..... and theirspouses and descendants shall, subject to provision for an income for life to...... and......, enjoy the benefits of a common estate as provided,and to effect this purpose...... and..... are willing to contribute scheduled property and..... is willing to undertake the trust provided foron condition of provision for his [her] sibling and himself [herself] as set forth.
NOW THEREFORE, in consideration of the mutual love and affection, and of respective contributions and agreements of the parties, it is agreed that a Company shall be formed by....... under the Companies Act, 1956 as may be selected by.............. on advice of attorneys, with a share capital of at least Rs...., to be divided into shares of Rs..... each, which Company shall be authorized to acquire, hold, manage, dispose of, sell and reinvest in any property of the character scheduled and other similar properties, the particular form of the statement of corporate purposes and the name of Company, and general terms of its charter to be determined by..... on the advice of attorneys for the purpose of effecting the ends of this agreement; and all of the foregoing interests as scheduled is conveyed to......, in trust for the Company to be formed, all of the capital stock of the Company, except the number of shares necessary to qualify persons, other than....., acting as directors, shall be held by......, as trustee on the following conditions:
First. Trustee shall vote the stock according to his [her] best judgment for the purpose of controlling and managing the business of the Company and of Companies in which the Company to be formed may be a stockholder.
Second. Trustee, shall during the life of....................., ....................., ..................... and distribute any dividend declared on the capital stock held in trust to each of the four undivided interests in equal amounts.
Third. Each of the four interests shall terminate with the death of the parties entitled to enjoy them: The respective interests and dividends shall be apportioned among the surviving interests equally to each interest until there is but one interest still surviving in which event the trust shall terminate and the trustee shall transfer title to the stock pro rata to the parties then entitled to the benefits in proportion to their respective rights to the dividends.
Fourth. In use of the term .interest...................... and..................... shall each personally and solely constitute one interest;..................... and her husband and lineal heirs [of her body], if she has any shall constitute one interest;....................., and his wife and lineal heirs [of his body]; if he has any shall constitute one interest.
Fifth. While..................... shall live, dividends apportionable to her interest shall be payable to her individually. If..................... dies leaving a husband or lineal heirs [of her body], dividends apportionable to her interest shall be paid to her husband and heirs, so long as there is a husband or heirs; in proportion to their interests as surviving husband or heirs of...................... If..................... shall die without leaving a husband or lineal heirs [of her body],
or if she dies leaving a husband or heirs, and her husband and heirs all die before termination of all other interests, the interest of..................... shall terminate and be extinguished.
Sixth. While..................... shall live, dividends apportionable to his interest shall be payable to him individually, and if he dies leaving a wife or lineal heirs [of his body], dividends shall be paid to his wife and heirs in proportion to their interest as surviving wife and heirs of....... If..................... shall die leaving a wife or lineal heirs [of his body], and the wife: and heirs all die before termination of all other interests, the interest of..................... shall terminate and be extinguished.
Seventh. Upon the death of all parties, or in case..................... ,..................... and................ shall die before............... this trust shall terminate, and the stock shall be transferred by the trustee to the persons who are then entitled to
dividends in ratio of their respective interests:
Eighth. Collateral heirs or consorts of descendants of..................... and..................... shall not be considered as or become entitled to any rights as heir under provisions of this trust.
Ninth. Trustee, shall, before distribution of dividends, pay the actual expenses of household maintenance and sustenance for the beneficiaries of trust as continue to reside in the residence now jointly occupied by the parties or as a common family in any other place of residence selected by the trustee in case of sale of the present residence; and in the absence of dividends the trustee may advance funds necessary for expenses and deduct them from dividends earned.
Tenth. In case of death, disability or refusal of.... to act as trustee, a successor in the trust may be appointed by an instrument in writing signed by a majority in number of the adult individuals then entitled to the benefits of the
trust.
IN WITNESS WHEREOF the parties hereto have executed these presents on the day and year first above written.
WITNESSES:
1.
2.
[Signatures of all the parties]
