Ashok Kakkar
Quick Summary
Introduction A trust is one of the oldest and most effective legal arrangements for protecting and managing property. Although the concept has existed for centuries, many people still believe that trusts are meant only for wealthy families or large charitable organizations. In reality, trusts can s
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FAQ :
A trust is a legal arrangement where one person transfers property to another to manage for the benefit of someone else or for a specific lawful purpose, creating a relationship between the settlor, trustees, and beneficiaries.
The three key participants are the settlor (who creates the trust and transfers property), the trustee (who manages the property), and the beneficiary (who receives the benefit of the trust).
A private trust benefits specific individuals or family members, often for succession planning. A public trust is established for charitable, religious, educational, or other public purposes.
A trust is generally created through a written Trust Deed, outlining a clear intention, lawful purpose, identifiable property, appointed trustees, clearly identified beneficiaries, and the transfer of property to the trustees.
Trustees must administer the trust according to its objectives, protect trust property, act honestly and impartially, maintain proper accounts, invest funds prudently, and avoid conflicts of interest, always prioritising the trust's interests.
People create trusts for various reasons, including protecting family assets, planning succession, managing property for minors, supporting charitable activities, and ensuring professional management of assets across generations.
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