What is a Private trust?
A private trust is constituted for the benefit of one or more individuals who are, or within a given time maybe, definitely ascertained.
When the trust is established for family members, relatives, friends, etc. then the trust is called a Private Trust.
The formation of a private trust gives this transaction a legal form and guarantees that money is used only for the benefit of his/her family and in the way the trustee wishes it to be handled.
Benefits of a Private trust:
- Effective and efficient mode of managing and passing of family assets.
- In creation of Trust, court does not oversee the process unlike at the time of execution of Will.
- Safeguards interest of family members including maintenance of members with special needs.
- Avoids family disputes.
- Conditions can be attached such as attainment of particular age/fulfillment of authors’ wishes.