CHARITABLE TRUST

•Irrevocable trust established for charitable purposes.

•Enjoys various degrees of tax benefits and generates goodwill.
•In India, trusts for social causes are approved by the Income
Tax Department.
•Payment of tax is exempted and the donations to the trust can
be deducted from the person’s income.
•Example- relief for the poor, education, medical relief,
preserving monuments and the environment
 BLIND TRUST
 In this the trust beneficiaries have no knowledge of the
holdings of the trust.
 The trustees have full discretion of the assets.
 Used when a trust creator wishes for the beneficiary to be
unaware of the specific assets in the trust, such as to
avoid conflict of interest between the beneficiary and the
investments.
 Politicians often place their personal assets into blind
trusts, to avoid public scrutiny and accusations of conflicts
of interest when they direct government funds to the
private sector.
 PROPERTY TRUST
 In this trust, assets have been placed into a fiduciary
relationship between a trustor and trustee for a
designated beneficiary.
 Property can be cash, securities, real estate or life
insurance policies.
 reduce tax liability
 For estate planning purposes, trust property will pass
directly to the designated beneficiaries upon the
trustor’s death without probate.