Trusts have evolved from being associated solely with legacy wealth to becoming essential tools for modern financial management in India. Defined under the Indian Trusts Act of 1882, a trust is a legal arrangement where one party, the trustee, manages assets for the benefit of another party, the beneficiary. This structure allows for effective asset management, succession planning, and philanthropy. Trusts can be established by any legally competent individual or entity, including Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs). A trust is typically created through a trust deed, which outlines its rules and purpose.

Trusts can be categorized based on their purpose, revocability, and control. For example, private trusts serve specific individuals or families, while public trusts are established for charitable purposes. Revocable trusts can be altered by the settlor, whereas irrevocable trusts cannot be easily changed. The rise of high-net-worth individuals and the increasing complexity of family structures have made trusts more relevant, alongside the introduction of institutional trust formats like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). As wealth diversifies and globalizes, trusts offer a structured yet flexible means of managing financial assets.