Sai Bhavani is a trust, which works out to be an obligation where all the income from the properties is being used for religious purposes. In this regard the objectives of the trusts are clearly defined or specified along with the beneficiaries clearly illustrated. This trust has an option of setting apart some of the funds which are received from voluntary donations in the previous years. In terms of tax advantage it is not going to be considered as income of the previous years.
Sai Bhavani has incorporated a corpus fund as part of its memorandum. A trust is normally created by a will of deed or framed by a constitution of the courts. In case of public trust, the benefits of object or the list of beneficiaries are the general public at large whereas in the case of private ones, the list of beneficiaries is well known before hand.
Sai Bhavani as the name suggests is regarded as an obligation, where the income obtained from all properties are clearly being used for religious purposes. One thing for sure is that the objectives of the trust are clearly defined and the list of beneficiaries is incorporated. The trust has the privilege of setting apart some of the funds which have been received as voluntary donations in the earlier years. In terms of taxi obligation, it is not going to be considered as income from the previous years.
Sai trust has been created with a lot of purposes in mind.
- Management of assets - If the beneficiaries do not have the capacity to manage the assets provided to them, having a trust like Sai Bhavani can solve the problem to a large extent. A trust like them can go on to provide a proper governance structure.
- Protection of assets - if someone wants to protect their assets from creditors, or from someone who is going to influence their beneficiaries, a trust like Sai Bhavani can seem to be an effective clog in the wheel.
- Avoiding any form of compulsory succession- if some feels that they are not treated fairly in a will, a legal battle can arise. In certain cases, the chances of the will be varied can also occur. A properly drafted trust can be a solution so that any form of challenges to the wishes can be avoided.
- Saving taxes - perhaps the most important advantage of the formation of a trust is saving of taxes. Say for example, you can split the income to the lower income beneficiaries that is going to be taxed at lower rates. It is also possible that you can avoid provincial surtaxes with the help of a trust if the province charges them.
- Protection of privacy – after the death of a person, on all counts his will is going to be probated. In that case the will left by you goes on to become a public document along with the value of assets on your plate. There is also a law where certain people may be entitled to receive a copy of your will. A trust agreement is a private document and it should not be open to the public in any way. It is a general notion that some people go on to replace their will with a trust.
- Controlling distributions – If you do not trust your beneficiaries if they are minor or their conduct is not good then what you can do is that you can transfer them through the medium of a trust.
Sai bhavani trust within a short span of time has created pulsating effects in the market. Some of their major achievements till date have been they have been committed to 98 causes till now. Close to 6084 lives have been saved by them till now and there are located in close to 16 places. As part of their rooster they have close to 378 volunteers on board.