Public Trust
Public trust can be created for public charitable purposes. There is no All India Level Act for setting up public charitable trusts. Some of the states in India has enacted the Public Charitable Trust Act, while most states in India do not have a trust act. An NGO can be created only under a public trust act. Madhya Pradesh and Rajasthan have independent state-level public trust acts. States like West Bengal, Jharkhand, and Bihar, do not have any activity to register a public trust. A trust can be registered in one state, but the same has the scope to operate in any number of states. In the state of Maharashtra and Gujarat, all organizations that are registered as ‘Society’ are by default also registered as Public Trust. Public trust is one which benefits the public at large or some considerable portion of it. Public trust registration can be of two types, viz., (a) Public charitable trust, (b) public religious trust. The public trust doctrine requires the states, as the trustees of the lands underlying navigable waters, to preserve these lands for the benefit of the public for navigation, fishing, recreation, and other uses, and to protect the right of the public to use the lands for these purposes. Under the doctrine, while the state can permit private uses to occur on those lands, the state is prohibited from alienating public trust resources or from allowing their value to the public to be degraded.
Private Trust
A private trust, created under and governed by the Indian Trusts Act of 1882, aims at managing assigned trust properties for the private or religious purpose. A private trust does not enjoy the privileges and tax benefits that are available for public trusts or. In the case of private trust, the beneficiaries are individuals or families.
Private trusts are further broadly classified into:
(i) The private specific trust also referred to as Private Discretionary Trust with beneficiaries and shares determinate in respect of both.
types of trust in a ngo
(ii) Private Discretionary Trust where the beneficiaries or their share or either is
indeterminate.
Private trusts are the form of trust that people most commonly associate with the term “trust.” Private trusts generally involve relationships between private individuals or entities in which one person or entity puts property or money in trust for the benefit of another. 80g registration can be also defined as a registration process under the trust. A typical example is a trust established by parents for the benefit of their children (or even multiple generations of descendants) to provide for education, health care, or maintenance payments, with a specified person (such as a lawyer, banker, or family member) serving as the trustee. The private trust is probably the “purest” form of the trust relationship, in which the settlor, trustee, and beneficiaries can be easily (and specifically) identified, even if some beneficiaries are not yet born.
This has particular significance with regard to who can enforce the terms of the trust, because where there are specific individuals who are the identified beneficiaries (who hold the “equitable” interest in the trust property), only those beneficiaries automatically have the right to enforce the terms of the trust and ensure that the trustee is observing her duties and providing the anticipated benefit.34 The trustee’s duties are owed to that beneficiary, and no other person (aside from the settlor) has standing to contest the management of the trust.
Private trusts are also generally limited in duration, having a purpose that will be achieved within some identifiable period of time, after which the trust terminates. Although courts have generally permitted multi-generational trusts, until very recently, the courts were unwilling to recognize private trusts that had no limitation on their duration. Where the duration of a private trust was not explicitly stated or was not otherwise implicit in the purpose for which the trust was created, courts generally found that the trust was invalid under the Rule Against Perpetuity, a common-law rule that prohibits certain types of permanent restrictions on the use of property under the theory that such restrictions are socially undesirable. society registration is another process with a different condition. Although most American jurisdictions have recently adopted rules allowing for the existence of private trusts with unlimited duration, these so-called “dynasty trusts” are controversial, as they can permanently devote significant amounts of property to the benefit of a few private individuals.
