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What is the distinction between a public trust and a private trust?

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posted Jun 16 by Chetan Hindu

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Public trust are generally formed for charitable or religious purposes, and are not intended to do commercial activities. A public charitable trust is one, which benefits the public at large, or some considerable portion of it. While, the income from private trusts is available to specified beneficiaries and not to the public at large.
A charitable trust is defined to include relief of the poor, education, medical relief, and the advancement of any other object of general public utility. Promotion of sports and games is considered to be a charitable purpose.

The public or private trust, differ in the process of their creation. In creating a charitable or religious trust, a formal deed or any other writing is not necessary, even if it involves immovable property. It may be created by use of words, but what is necessary is that there should be divestment of property on the part of the author or the settlor of the trust and should vest in the trustee, a third person.

Private trusts are created and governed by the provisions of the Indian Trusts Act, 1882, whereas charitable trusts are beyond this Act. The Act applies to whole of India except when specifically amended by any State Government.

answer Jun 17 by Swati Tyagi
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