A trust is defined as an arrangement by people known as trustees who hold the property as the nominal owners of that property. A trust is a method through which a limited number of people hold the property on behalf of the other person, which even includes those who are not born yet. 

When the trust holds the property, they have ownership over that property. However, this doesn’t imply that they can use the property for their own benefit. As the law states, the trust is compelled to use their ownership over the property in a manner that is beneficial for the beneficiary of that property. This implies that the beneficiary of the property has defacto ownership. 

The law that governs the formations and regulates the framework of trust in India is the Indian Trust Act, 1882, and the Income Tax Act of 1961. However, the provisions of the Indian trust act are not applicable in the case of public trust. But the requirements for forming a public trust and other trusts under the Indian Trust Act are the same. 

The requirements for forming a trust are:

1. There should be a founder/author of the trust. 
2. There must be a property of the trust given by the founder/author of the trust.
3. The trust must be properly constituted by the founder/author of the trust. 
4. The declaration of trust must be made
5. All the criteria for a constitution of trust must be fulfilled, i.e. the intention of the trustees and the founder must be certain and clear, there should be clearity concerning the subject matter of the trust, and lastly, the object or the beneficiary of the trust must be clearly identified

Certain conditions must also be fulfilled while setting up a trust: 

1. The Author of trust must give up his ownership and the beneficial interest on the property
2. The said property must be clearly described
3. The object and purpose for the creation of the trust must be clearly identified and mentioned
4. Although it is not mandatory to draft a formal deed written to state the intention and purpose of the trust, this may be done through words as well, however, it is advisable to draft a deed. 
5. The author of the trust must be competent to enter the contract 
6. The property held by the trust must be transferable to the beneficiary and it should not be only the transfer of beneficial interest. 

As a common rule, any person who has the authority or power to dispose of a property is eligible of forming a trust. According to the transfer of property act, the person transferring the property must be competent as per the law to transfer the property and enter the contract. Individuals, a group of individuals, or an artificial person all are competent to create trust. This also includes HUF. Under HUF the trust can be created through the Karta or the head of the HUF concerning the family property and for the benefit of all the family members. 

Concerning the qualifications of a trustee and who can become a trustee, as per law, any person who is capable of holding the property can become a trustee, but in case a trust involves the exercise of discretion, he may not be able to do so until he is not competent to enter the contract. In case there are no trustees appointed by the trust, the court has the power to appoint a trustee. 

The person for whose benefit the trust holds the property is called the beneficiary. A beneficiary can be any person, this includes, women, children, even minor and unborn. A trustee may also be one of the beneficiaries. A beneficiary also has the right to renounce his interest in the property. 

Thus, a trust is a private arrangement, which includes three parties, the trust, trustees and the beneficiary, each of them must be qualified as per law. All the necessary requisites must be fulfilled by the trust for the formation and establishment of the trust, even if one of the above-stated element is missing, then the chances of getting the status of trust are at risk. It is important to note that the trust is formed to hold the property as the owner of the property for the benefit of the beneficiary and it at an obligation to act in a manner that proves to be the beneficiary and causes no loss of prejudice to the interest of the beneficiary. 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.