Distinguish between the following: 'Public trust' and 'private trust'.
CS Professional · Drafting, Appearances and Pleadings · PYQS · December 2016
Distinguish between the following: 'Public trust' and 'private trust'.
Answer & Explanation:
In a public trust the beneficiary is the general public or a specified section of it. In a private trust the beneficiaries are defined and ascertained individuals. In a public trust the beneficial interest is vested in an uncertain and fluctuating body of persons. The nature of the trust may be proved by the evidence of dedication or by user and conduct of parties. Where a trust is created for the benefit of the members of the settlor's family, it is a private trust and not a public trust. Every charitable trust is only a public trust as benefit to the community at large or to a section of the community is of the essence of a valid charitable trust. But a religious trust need not necessarily be a public trust as there can be a private religious trust also.
Topics: Trusts
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