Outlook Money
People create trusts to distribute their accumulated wealth after retirement or death according to their wishes.
There are two kinds of trusts, public and private, and both have different functions.
A private trust is created when the settlor who makes it wants to distribute the wealth among their selected beneficiaries.
The beneficiary(s) of a private trust are those selected by the settlor and they can take legal action against the appointed trustee if it doesn’t enforce the trust’s mandate.
A public trust can be established in memory of a single individual but may have many or no beneficiaries.
Unlike private trusts, public trusts do not require specific beneficiaries; it could be a community or the society at large.
Compiled By Himani Verma