What is a "charitable trust"?

A charitable trust is defined as a trust established specifically to benefit a charitable organization or the public at large. This type of trust is designed to support philanthropic activities and advance charitable goals, such as education, religion, health care, or other activities that serve the public interest. The assets in a charitable trust are typically used to support the designated charity or cause, and these trusts often come with certain tax benefits for the grantor, as they promote charitable giving.

The focus on benefiting a specific charity or the public good distinguishes charitable trusts from other types of trusts that may have personal or financial aims. This framework ensures that the funds are directed towards helping others rather than generating profit for individuals, underscoring the altruistic nature of charitable trusts.