Trusts in India are governed under the provisions of the Indian
Trusts Act, 1882 (the "1882 Act"). In
terms of the 1882 Act, a 'Trust' is an obligation
annexed to the ownership of property, and arising out of a
confidence reposed in and accepted by the owner, or declared and
accepted by him for the benefit of another, of another and the
owner.
The person who reposes or declares the confidence to create the
trust is known as the "author of the trust" /
"settlor". The person who accepts the confidence is
called the "trustee". The person for whose
benefit the confidence is accepted by the trustee is called the
"beneficiary". The subject matter of the trust
is called "trust property". The
"beneficial interest" or
"interest" of the beneficiary is the right
against the trustee as owner of the trust property. The instrument
by which the trust is declared is called the "instrument
of trust" / "trust deed" /
"indenture of trust".
