Anatomy of a Family Trust

Not a company. Not a contract. A family trust is a relationship of confidence, given legal shape by the Indian Trusts Act, 1882. Here is how it is built, in one look.

The three roles every trust needs

| Role | Who | What they do |

| --- | --- | --- |

| SETTLOR | સેટલર | Creates the trust and puts the property in. The Act calls this the "author of the trust". |

| TRUSTEE | ટ્રસ્ટી | Holds the legal title and manages the property for others, never for himself. |

| BENEFICIARY | લાભાર્થી | The people the trust is for. Each holds a "beneficial interest", a right against the trustee. |

How the pieces fit

Settlor → puts property in → Trust Deed (and a separate Letter of Wishes) → held in trust by → Protector (watches the trustee) → for the benefit of → Beneficiaries.

Legal ownership sits with the trustee. Beneficial enjoyment belongs to the beneficiaries.

Do you keep control? Yes.

• You can wear all three hats – The settlor can also serve as a trustee, keeping a hand on the wheel, and in many structures can be a beneficiary too. The Act allows a trust for the benefit "of another, or of another and the owner".
• Choose your trustees – Family, a professional, a corporate trustee, or a mix. Balance control today with continuity tomorrow.
• Appoint a Protector – A trusted elder or advisor who watches the trustee, and can veto key decisions or replace one.
• Your Letter of Wishes – A private, non-binding guide on how discretion is used: education first, business stewardship, care of a vulnerable member.

Settle almost any asset

Family-company shares, real estate, financial investments, even intellectual property — keeping the family's holding consolidated and undivided across generations.

Coming up next

How a family trust ring-fences your wealth from business risk.