The Islamabad Capital Territory Trust Act, 2020
The Islamabad Capital Territory Trust Act, 2020 is a comprehensive legislation designed to establish a framework for the formation, management, and regulation of trusts within the Islamabad Capital Territory of Pakistan. The Act aims to facilitate the creation and administration of trusts transparently and efficiently, ensuring the protection of the rights and interests of both beneficiaries and trustees. The Act outlines the procedure for the creation and registration of trusts, emphasizing the importance of proper documentation and compliance with legal requirements. Trustees are assigned the responsibility of managing trust property and fulfilling their fiduciary duties towards beneficiaries, and the Act establishes guidelines for their appointment, removal, and resignation, ensuring a fair and accountable process. To regulate trusts effectively, the Act establishes the Trust Registration Authority (TRA) with powers to maintain a register of trusts, examine trust documents, and monitor compliance with the provisions of the Act, thereby preventing fraudulent activities and resolving disputes related to trusts. The Act also includes provisions for the governance and operation of trusts, covering aspects such as the distribution of trust income and assets, resolution of conflicts of interest, and reporting obligations. In terms of accountability and transparency, the Act establishes mechanisms for auditing and inspection of trust accounts and records. It also outlines the procedures for resolving disputes and provides for the jurisdiction of designated courts for trust-related matters. Overall, The Islamabad Capital Territory Trust Act, 2020 serves as a significant legal framework that promotes establishing and effectively functioning trusts in the Islamabad Capital Territory, ensuring the protection of beneficiaries’ interests and maintaining the integrity of the trust sector within the jurisdiction.
