14 October 2013
As per Section 7 of the Indian Trusts Act, a trust may be created by every person competent to contract and by or on behalf a minor, with the permission of a principal court of original jurisdiction. Following are eligible to create a Trust :
Trust by an Hindu Undivided Family; Trust by a Minor; Trust by a Woman; Association of Persons; Company(eg: Debenture-Redemption Fund Trust for redemption of its debentures)
From what I understand, a trust involves three types of parties -- the settlor, the trustee, and the beneficiary. The settlor is the person who establishes the trust including determining the original trustee and the beneficiaries, what property is in the trust, and what rules govern the duties of the trustee. The trustee is the person (or persons or company) that manages the trust. The beneficiaries are the people who receive the income (or property) or property from the trust.
Also it will be interesting to know for you that a Charitable trust generally takes the form of a trust when it is formed primarily by one or more persons.
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