Demerger of Trust — Divided. Documented. Defensible.
Structuring and documenting the division of a charitable or private trust into two or more trusts, including deed drafting, asset allocation and regulatory filings in Nashik and across Maharashtra.
Book Free ConsultationA demerger of trust involves dividing the objects, activities or corpus of an existing trust into two or more separate trusts. It is generally considered where objects have become too broad, where regions or activities need independent governance, or where trustees are unable to agree on a common direction.
At N D Savla & Associates, we assess whether a demerger is permissible under the trust deed and applicable law, and prepare the documentation — deed of demerger, asset allocation schedules, trustee resolutions and regulatory filings — needed to give effect to it.
Because a demerger affects existing registrations, donor commitments and ongoing projects, we work through the tax and regulatory consequences before the split is implemented, not after.
Our Demerger Services
Demerger Feasibility Review
Assessment of the trust deed and objects to determine whether a demerger is permissible.
Deed of Demerger Drafting
Drafting the deed giving effect to division of objects, activities or corpus.
Asset & Liability Allocation
Structuring how assets, liabilities and ongoing projects are apportioned.
Trustee Consent Documentation
Recording trustee resolutions and consents required for the demerger.
Regulatory Notifications
Intimation to the Charity Commissioner and other applicable authorities.
Tax Implication Assessment
Review of the income-tax consequences of splitting the trust.
Registration Continuity Advisory
Guidance on the status of existing 12A/80G registrations post-demerger.
Post-Demerger Compliance Handover
Handover of records and compliance calendar for each resulting trust.
Our Demerger Process
Assessment of Objects & Deed
We examine the trust deed and objects to confirm a demerger is permissible and appropriate.
Structuring the Demerger
Objects, activities, assets and liabilities are mapped across the resulting trusts.
Drafting Demerger Documents
The deed of demerger, resolutions and allocation schedules are prepared.
Filings & Approvals
Applicable intimations and filings are made with the Charity Commissioner and other authorities.
Compliance Handover
Records, registrations and a compliance calendar are handed over to each resulting trust.
Why It Matters
Frequently Asked Questions
Considering a demerger of your trust?
Send us your trust deed and the reasons for the proposed split — we'll assess feasibility and prepare a demerger file that holds up.