A trust is a relationship in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another. Trusts are governed under the Trustees Act, including charitable trusts.

A charitable trust can be created when a donor, either during his lifetime or by will, makes a gift to charity, appointing trustee(s) to hold the gift in trust and to use it for the charitable purposes as specified in the trust.

A trust has no independent legal entity status and thus, trustees will be responsible for legal liabilities arising from the trust.