6 Things To Know About Public And Private Charitable Trusts

Outlook Money

What Is A Trust?

People create trusts to distribute their accumulated wealth after retirement or death according to their wishes. 

Types of Trusts

There are two kinds of trusts, public and private, and both have different functions.

Private Trust

A private trust is created when the settlor who makes it wants to distribute the wealth among their selected beneficiaries.

Beneficiaries of Private Trust

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.


Purpose of Public Trust

A public trust can be established in memory of a single individual but may have many or no beneficiaries.

Beneficiaries of Public Trust

Unlike private trusts, public trusts do not require specific beneficiaries; it could be a community or the society at large. 

Compiled By Himani Verma

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