CHARITABLE TRUST REGISTRATION
- Category: CHARITABLE TRUST REGISTRATION
- Date 29-05-2023
A Charitable trust is a legal vehicle that allows a third party, a trustee, to operate and manage assets in a trust fund on behalf of a beneficiary. A charitable trust dramatically increases your choices about controlling your assets.
Charitable purpose
In the amendment, the expression “Charitable Purpose” Act under section 2 (15) is included in the following:
1. Relief of the poor,
2. Education,
3. Medical Relief
4. Advancement of any other object of general public utility.
Type of Trust
1. Public trust
2. Private trust
Public Trust
Public Trust is one whose beneficiaries include the general public or a sizeable portion. Public Trust is further categorized into:
A public Charitable Trust
Public Religious Trust
Private Trust
A private trust is one whose beneficiaries are individuals or families. Personal trust is further classified into: –
1. Private Special Trust / Private Discretionary Trust: In this case, both the beneficiary and the share are determined.
2. Where either of the two beneficiaries and their share is uncertain.