• Sakshi Kothari

How to form and register a Trust in India to run a medical institution

Updated: Jan 11

This Article is written by Sakshi Kothari


This epidemic situation COVID 19 arising throughout the India So, This article outlines the functionality of medical institution governed by the trust which promote charitable treatment to the patients.

What is Trust?

A trust is a three-party fiduciary relationship in which the first party, the trustor or settlor, transfers property upon the second party for the benefit of the third party, the beneficiary. A testamentary trust is created by a will and arises after the death of the settlor.

How to form a Trust?

The union of people and also the financial background can help to build a Trust. According to the India Trust Acts.1882, defines trust as an obligation annexed to the obligation of property and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.

The person who repose or declares the confidence is called the “Author of the Trust”.

The person who accepts the confidence is called the “Trustee”.

The person for whose benefit the confidence is accepted is called the “Beneficiary”.

The subject-matter of the trust is called “Trust Property” or “Trust Money”.

The instrument if any, by which the Trust is declared is called the instrument of Trust or Trust Deed.

An illustration of the Recovery homeless shelter which is situated in Jaipur, The Pink City, which is a shelter in which the people who cannot afford the treatment of the health issues being faced by them and the treatment charges are bearable by this shelter.

As performing a trust does not provide any documentation to run an organization, the staff working is a self-directed volunteer and works for their desire. They also provide them to live in the shelter and proper nutrition and sanitation are provided. Medical aid is also the key factor being provided. It also goes for the follow up of the patient. There is also a daily program to distribute the medicines in the streets and focuses on the proper aid for medical health which is a very effective step.

To form a trust and register to run a medical institution is very different because as per the Trust Act there is no requirement of documentation and to run free medical institutions can also be a remarkable step for uplifting the young minds.

In HighCourt Of Kerla, Sree Anjaneya Medical Trust v. Commissioner of Income-tax, Kozhikode observes thatWhile granting registration to a trust, authorities are empowered to examine only genuineness of trust and its activities. During assessment only, eligibility in terms of sections 10, 11, and 12 is to be verified as to whether or not what was practiced was indeed in Deed of trust. That is to say: Asking for activities’ reports at the time of granting registration is not warranted.

The power of trustees is to look over the management control and also to seek legal opinion for the fruitful working of the shelter, the acceptance of gifts, donations are also to be objects of the trust. The trust is irrevocable. The trustees can amalgamate the trust with the other charitable trust which is only applicable for time being. The amendments have also taken place in the act. Even the private medical institution charges are high then the government because the facilities are good enough. As far as the semi-government institution is concerned they are also well maintainable and good working conditions are provided.


In a huge country like India with a creditable high income and middle income groups who consider charity for social cause a religious duty, the government can certainly look up to them to fill up financial gaps in the heath sector. Rich philanthropists, individual donations, donations from corporate and professional bodies may be the crucial requirement in areas to make the PPP initiative effective in delivering health care. Social clubs like Rotary Club and Lion’s Club have played a significant role in immunization campaigns, Pulse Polio campaign and other health care services. Since these clubs have a nationwide network, their involvement ensures better coverage. They also bring in their expertise and resources to the health care services.



I am Sakshi Kothari pursuing BBA LLB (H) from Amity law School. My vision is to become Corporate lawyer and make advocacy more organised and fast for both lawyers and their clients.

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