Why create a Trust ?
In creating circumstances it is advisable to create a Trust as opposed to bequeathing one’s assists in a Will because the individual’s who are to benefit from a Will may not be in a position to administer the assets: and there by maximize its potential . Thus by creating a trust you could appoint a trustee with sound business acumen and one who would administer assists to the best interest of the beneficiary/ beneficiaries. Furthermore, unlike a Will a trust would enable you to observe the implementation of your objectives as specified in the trust, while you are alive, as well as be aware of the fact that it will manner after your demise.
How to create a trust? And what are the possible objectives?
A trust could be created with amount of money, say Rs. 25000/- for either and individual or a charitable causes. The money could be invested and the normal invested and the normal interest be used, for carrying out the objectives of the Trust, and thereby perpetuate one’s name. There are two types of Trust, and thereby perpetuate one’s name.
There are two types of Trusts that may be made.
- Private Trust
This could be formed in a Will, or separate document could be made starting the objectives of your trust . This type of Trust is Usually for individuals or for a selected group of persons.
I.e:- for the education or your child/children , or individuals in whom you have a personal interest.
- Charitable Trust.
This too could be created in a Will or another document. A trust of this nature is for any section of of the Public. That is for the nature is for any section of the public. That is for the purpose of assisting educational, religious, or social activities or any other charitable causes by annual or monthly grants.
E.G: – scholarships for students of any school or University, maintence of schools, places of worship, hospitals, etc.
in either case the trust instrument can be drawn by the Public Trustee.
Examples or Trusts that have created with the public Trustee and are still in effect.
- The Trust by Dona Alpina Rathnayake in 1935 with a sum of Rs. 2,000/- to hold lectures on specified subjects.
- The Silva Wijesinghe Trust in which the settler be quashed a mansion and over 100 acres of agriculturally developed property, to run a home for needy children of provide them with food, clothing, shelter and education with view to making them useful citizen.
- Devi Balika Maha Vidyalaya National Welfare Trust for students, for the upliftment, advancement and promotion of educational and social activities of the children of offices and soldiers of the Armed Services who died in the service while fighting against terrorist.
- The trust created by Muhandiran Jayawickrema in which he bequeathed 360 acres of paddy land large extent of real Estate to help provide Buddhist Education in Sri Lanka .