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The Grantor Trust Agreement is a sophisticated legal instrument used in Indian estate planning and wealth management, governed primarily by the Indian Trusts Act, 1882. This document is essential when an individual (grantor) wishes to create a trust while retaining certain powers or interests in the trust assets, such as the right to modify beneficiaries or control investment decisions. It's particularly useful for tax-efficient wealth transfer, family asset protection, and succession planning in India. The agreement must comply with specific Indian legal requirements, including proper registration under the Registration Act, 1908, when involving immovable property. The document typically includes detailed provisions about trust administration, asset management, beneficiary rights, trustee powers, and tax implications, while ensuring the grantor maintains specific retained rights that characterize it as a grantor trust under Indian law.

1. Parties: Identifies and defines the Grantor, Trustee(s), and Beneficiaries with their full legal names and addresses

2. Background: Sets out the context and purpose of the trust creation, including the Grantor's intention to create the trust

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Trust Creation: Establishes the trust, specifies the trust property being settled, and declares the trust's name

5. Trust Purpose: Clearly states the objectives and purposes of the trust

6. Powers and Duties of Trustees: Comprehensive listing of trustee powers, responsibilities, and limitations in managing the trust

7. Rights Reserved by Grantor: Specifies powers and rights retained by the grantor, making it a grantor trust

8. Beneficiary Provisions: Details beneficiary rights, distribution terms, and conditions for receiving benefits

9. Trust Administration: Covers operational aspects including meetings, decision-making processes, and record-keeping requirements

10. Trust Property Management: Guidelines for handling, investing, and managing trust assets

11. Accounting and Reporting: Requirements for financial records, accounts, and reporting to beneficiaries

12. Trustee Compensation: Details of trustee remuneration and expense reimbursement

13. Successor Trustees: Procedures for trustee resignation, removal, and appointment of successors

14. Trust Amendment and Revocation: Conditions and procedures for modifying or revoking the trust

15. Trust Termination: Circumstances and procedures for trust termination and final distribution

16. Governing Law and Jurisdiction: Specifies Indian law as governing law and relevant jurisdiction for disputes