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There is a notion that trust can only be created by an elite class, but the fact of the matter is that the trust can be created by any individual. The private trust is governed by the Indian Trust Act, 1882. While the Public Trusts are usually governed by state-specific legislation. The act does not apply to the Waqf , charitable endowments or religious endowment.

A trust (under Indian Trusts Act 1882) is a legal relationship which arises when one person hands over all or some his property to another for the benefit of a third person or himself. The person who hands over the property is known as the author, the person who receives it is known as the trustee and the person who benefits from it is known as the beneficiary. For example, a person may create a trust handing over a part of his land to a friend with the directive to provide for his old age from the proceeds of the land. A person, for example, may also create a trust by transferring to a bank certain bonds he holds and direct them to provide maintenance to his wife after his demise from the dividends received on the bonds. In India, there are basically two types of laws governing trust: 1) The Indian Trusts Act 1882 which deals with private trusts. 2) The Public Trust Act of various states which deal with public trusts. These Acts are based on the general framework of the Indian Trusts Act 1882.