| \n BASIS\n \n <\/td> | \n Private Trust \n \n <\/td> | \n Public Trust\n \n <\/td><\/tr> |
| \n Meaning\n \n <\/td> | \n Trust created for the benefit of individuals\n \n <\/td> | \n Trust is created with an intention to serve the public or a\n charitable cause\n Statutes\n \n <\/td><\/tr> |
| \n Statutes\n <\/td> | \n Private trusts function as per the laws laid by the Indian Trust\n Act, 1882.\n \n <\/td> | Public Trust function on the basis of Laws laid down by the state they may include: The religious Endowments Act, 1863 Charitable Endowments Act, 1890 Charitable and Religious Trust Act, 1920, Societies Registration Act, 1860. \u00a0 <\/td><\/tr> |
| \n Beneficiaries \n \n <\/td> | The beneficiaries under the private trusts are specified in the trust deed, and they include members of family, relatives or friends. I.e. beneficiaries are clearly defined. <\/td> | The Beneficiaries under the Public trust is that they are not known as this trust is created for the public at large. Therefore they are uncertain and unknown. \u00a0 <\/td><\/tr> |
| \n Number of trustees \n \n <\/td> | The number of trustees in a Private trust is often few as They have to look after the property for a fixed number of beneficiaries. That’s why only a fixed number of trustees are present. \u00a0 <\/td> | A public trust, as it has to cater to numerous beneficiaries, tends to have a large number of beneficiaries. Generally, the public trusts have a board of trustees to look after them. \u00a0 <\/td><\/tr> |
| \n Longevity\n \n <\/td> | Private trusts are created for a specific time period, on the completion of which the private trust will get dissolved. \u00a0 <\/td> | Public trusts, as they are made for a large group of beneficiaries, remain functional for a longer period of time. \u00a0 <\/td><\/tr> |
| \n Registration\n \n <\/td> | Getting a private trust is not mandatory, but it is highly recommended in both cases regarding the movable and immovable property. \u00a0 <\/td> | In Public trusts, it is mandatory that the trust is registered for immovable property, and it is desirable to get the trust registered for movable property as well. \u00a0 <\/td><\/tr> |
| \n Types\n \n <\/td> | Types of Private trust are of two types these include revocable trust and irrevocable trust (this includes discretionary and non-discretionary). \u00a0 <\/td> | \n Types of Public trusts are also of two types. These include\n Charitable trusts and Religious trusts. \n \n <\/td><\/tr> |
| \n Devolution of property\n \n <\/td> | In the case of private trusts, the property and monies will go to the beneficiaries or heirs declared in the trust deed and to no one else. \u00a0 <\/td> | In public trusts, the asset can be given to any individual or any other entity unless it has been expressly mentioned in the deed. \u00a0 <\/td><\/tr> |
| \n Scrutiny\n \n <\/td> | Terms of Private trusts are only to be seen by the stakeholders who are involved in it, such as (trustors, trustees, beneficiaries and lawyers). People who are not involved in it are not supposed to go through it. \u00a0 <\/td> | Public trusts have to maintain transparency as they are created for the benefit of the public. Hence it is open for inspection. People can scrutinise its processes and question its management as well. \u00a0 <\/td><\/tr> |
| \n Number of beneficiaries\n \n <\/td> | Private trusts are created by the trustee keeping in mind the benefit of a “private person”( which can comprise of family members, friends, etc. or other predefined entities)- The number of beneficiaries is limited under private trust. \u00a0 <\/td> | Public trusts are created for the benefit of large groups of people. There are multiple beneficiaries under a public trust. The number of beneficiaries are many as they can’t be predetermined. \u00a0 <\/td><\/tr><\/tbody><\/table>\n\n\n\n<\/span>Conclusion:<\/span><\/h2>\n\n\n\nTrust is created so that the assets can be transferred from one person to another. The trusts are of two kinds private trusts and public trusts. Public trusts are created to foster charitable acts and are beneficial for the public at large. Private trusts are created for the benefit of individuals who are mentioned in the trust deed by the trustor. If we are to look at the difference between public vs private trusts, there are various aspects which make them distinct. A person should be well aware of these differences when studying trusts in India and their applicability.<\/p>\n","protected":false},"excerpt":{"rendered":" Trust is a type of fiduciary relationship created between two parties i.e. the trustor and the trustee. The trustee holds the property till the time the beneficiary becomes eligible to have possession of that property. The trusts are set up with an objective to safeguard the trustor’s assets. The creation of trust ensures that the […]<\/p>\n","protected":false},"author":12,"featured_media":11506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[73],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/11505"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=11505"}],"version-history":[{"count":6,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/11505\/revisions"}],"predecessor-version":[{"id":11513,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/11505\/revisions\/11513"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/11506"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=11505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=11505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=11505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |