What is a Trust?
A Trust is a fiduciary relationship where one party (the Settlor or Author) gives another party (the Trustee) the right to hold title to property or assets for the benefit of a third party (the Beneficiary). Trusts in India are governed by the Indian Trusts Act, 1882 for private trusts and respective state Public Trust Acts for public/charitable trusts.
Trust registration involves creating a Trust Deed - a legal document that outlines the terms, conditions, and purpose of the trust. Once the deed is executed and registered with the appropriate authority (Sub-Registrar or Charity Commissioner), the trust comes into legal existence.
Trusts are popular for charitable activities, religious purposes, educational institutions, and family wealth management. They offer flexibility in management while providing legal protection and tax benefits (for charitable trusts).