Trust is an obligation which can be created by any individual or body corporate to repose confidence w.r.t any property for the benefit of others. There are generally three parties to Trust – Author, Trustee and Beneficiary. Trust must be created for a lawful purpose.
There are mainly two types of Trusts – Private Trusts – is created within a closed circle with identifiable beneficiaries eg – family trust, trust for business assets etc and Public Trusts – is created for the benefit of larger group of people eg – NGOs, charitable societies etc.