Private trusts are governed by the Indian Trusts Act, 1882. This Act is applicable to the whole of India except the State of Jammu and Kashmir andthe Andaman and Nicobar Islands. That apart this Act is not applicable to the following:

1. Waqf
2. Property of a Hindu Undivided Family's.
3. Public or private religious as charitable endowments.
4. Trusts to distribute prizes taken in war among the captors.

CREATION OF A PRIVATE TRUST

1. A Private trust may be created for any lawful purpose.
2. A private trust can be created by any person who is of the age of majorityand is of sound mind, and is not disqualified by any law. Every person domiciled in India attains majority, when he or she completes age of 18years. But in case of a minor, for whom a guardian is appointed by thecourt or of whose property the superintendence has been assumed by thecourt of wards the age of majority is twenty one years.
3. A trust can be as well created by or on behalf of a minor with thepermission of a principal civil court of original jurisdiction.
4. Apart from a human being, a company, firm, society or association of persons is also capable of creating a trust.