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Trust - Meaning

Trust is the obligation or responsibility imposed on one in whom confidence or authority is placed; it is a confidence reposed in a person by conveying to him/her the legal title to property which he/she, is to hold for the benefit of another. The concept of trust flows faith of one person in the honesty, integrity and reliability of another person. If a person, out of his own free will reposes his property to the care of another person with his consent ,for specific purpose or period, that another person has to uphold the trust reposed in him.

Definition of Trust

A "trust" is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner:

Author of Trust

The person who reposes or declares the confidence is called the "author of the trust"

Trustee

The person who accepts the confidence is called the "trustee"

Beneficiary

The person for whose benefit the confidence is accepted is called the "beneficiary

Trust Property

The property which is bestowed on to the trustee , to be utilized or hold for the benefit of the Beneficiary.

A plethora of laws govern the formation, management and administration of trusts in India. Separate laws have been made for different types of trusts covering Indian Trusts Act 1882, Charitable and Religious Trusts Act 1920, Wakf Act 1995, Sikh Gurdwara Act 1925and other trusts laws depending on the type of the trusts.

Types of Trusts

The trust have been broadly classified as

1. Public Trust
2. Private Trust

However on the basis of the purpose and the way of the formation, the trusts have been further classified as following:

1. Oral and Written Trusts
2. Simple and Special Trusts
3. Express and Implied Trust
4. Revocable and Irrevocable Trust

Public Trust

A trust is called as Public Trust when it is constituted wholly or mainly for the benefit of Public at large, in other words beneficiaries in the Public trust constitute a body which is incapable of ascertainment. The Public trusts are essentially charitable or religious trusts and are governed by the general Law. The provisions of Indian Trusts Act do not apply on Public Trusts.

Private Trusts

A trust is called a Private Trust when it is constituted for the benefit of one or more individuals who are, or within a given time may be, definitely ascertained. Private Trusts are governed by the Indian Trusts Act.

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