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How to Start a Private Trust in India?

We are always concerned about well-being of our loved ones. This becomes more imperative when such people are not in a position to look after themselves like old parents, minor children and persons with disabilities. A trust is one such method of making provision for care and support of our loved ones. 

Trust is a transfer of property form one person to another person for benefit of a third person. Both, movable and immovable property can be a subject matter of the trust. A trust can be created for any lawful purpose. A private trust is one, which is created for benefit of an individual or group of individuals.

 The person who creates the trust is called Author/Settlor. The person to whom property is transferred for administration is called Trustee and the person for whose benefit the property is transferred is called beneficiary. 


Below are some of the common instances where a private trust is created-

✔ For benefit of old parents

✔ For benefit of minor children

✔  For benefit of settlor himself

✔  For benefit of a relative with disability

✔  For benefit of wife post death

✔  For distributing property among successors post death

A Private trust must have following essential attributes- 

✔  Lawful purpose

✔  For benefit of individual or group of individuals

✔  Formed by a trust deed

✔  Must be registered if immovable property is transferred

✔  Property should be managed by trustee(s)

Any person who is a major, not insolvent and not legally insane, can create a trust. A minor can create a trust with prior permission of court. Similarly, any person who is not a minor, not insolvent and legally insane can be a trustee.

It is very important that in order to create a valid trust, the settlor must clearly indicate his/ her intention to create a trust by clearly specifying the trust property, the trustee(s) and the beneficiary(s).  

If the trust comprises of immovable property, then it is mandatory to execute a written trust deed and get the same registered. However, a written trust deed is not mandatory if the movable property is subject matter of trust. In such a case, mere delivery of property to the trustee will constitute a trust. 

For more details, please visit Legal Dost and get started.

Legal Dost will help you in trust registration and creation services so that you can make provisions for your loved ones. Legal dost is an online platform that caters to all your legal issues in a simple and transparent manner. Visit Legal Dost and experience a new level of service!  



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Location: Chandigarh, India

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