In India, trusts are governed by the Indian Trust Act. A trust is, to put it simply, a financial vehicle that transfers a property from its owner to a trust for any lawful purpose. In India, the word trust is most often connected with religion; however, there is no such restriction. There are even sports academies registered as trusts.
A Trust may be private and public.
Private Trust – When the purpose of the trust is to benefit an individual or a group of individuals or his or their descendants for any legal person and who is capable of holding property, it is a private trust.
Public Trust- When the purpose of the trust is to the benefit the public or any section of the public, it is public trust.
In some states, even societies are public trusts. Often, you’ll even hear of the wealthy creating private trusts; this is done because of the tax-efficient nature of the trust (dividend distribution tax or minimum alternate tax do not apply) and because it’s an easier way to transfer money than a will.