A Society is essentially an “association of persons” and hence has human persons as its “members.” The members are both “owners” and the “management” of the Society.
A Trust, instead, is essentially a “legal obligation” attached to some property which is carried on with the help of human persons called “Trustees” because of the trust reposed in them by the owner of the property (Section 3 of Indian Trust Act 1882, [ITA, 1882 for short]). In this article we will discuss some issues of a Trust vis-à-vis Trustees.
Public & Private Trusts
A trust registered in India is generally governed by the Indian Trust Act 1882 or in the State of Maharashtra by the Bombay Public Trust Act 1950 or by any other Trust Act in force in the respective State. A trust is defined as a “Public” trust when it is irrevocable, where the beneficiaries are the public-at-large and on dissolution the remaining assets are not shared among the trustees or select beneficiaries. A “private trust,” instead, refers to a trust that is revocable, where the beneficiaries are a private group of individuals or members of a family and where on dissolution the remaining assets are distributed among the select beneficiaries. A public trust is entitled for benefits under the income tax act, whereas a private trust will pay taxes.
Fr Trevor D’Souza OFM
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