Private Trust

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.