Declaration of Trust Template for Denmark

A Declaration of Trust creates a legal arrangement where someone holds and manages property or assets for another person's benefit under Danish law. It formally documents how a trustee must handle specific assets, establishing clear rules about ownership, management rights, and beneficiary interests.

In the Danish context, these declarations play a vital role in family wealth planning, property arrangements, and business structures. While Denmark doesn't recognize trusts as extensively as common law countries, these declarations help create similar protective arrangements, especially for asset protection and inheritance planning under Danish civil law.

A Declaration of Trust becomes essential when you need to formally protect assets or manage property on behalf of others in Denmark. Common situations include holding property for minor children, managing family wealth across generations, or structuring business ownership arrangements where direct transfer isn't practical or desired.

This legal tool proves particularly valuable during estate planning, business succession transitions, or when creating investment structures with multiple beneficiaries. Danish families often use these declarations to establish clear management rules for shared property, protect assets from creditors, or create transparent arrangements for long-term asset administration.

• Bare Trust Declaration: Used for straightforward property holding arrangements where trustees have minimal active duties beyond safeguarding assets
• Family Trust Declaration: Establishes complex multi-generational arrangements for wealth preservation and inheritance planning
• Business Trust Declaration: Creates structured ownership arrangements for commercial assets or company shares
• Investment Trust Declaration: Sets up frameworks for managing investment portfolios or financial assets for beneficiaries
• Protective Trust Declaration: Implements special conditions to safeguard assets from creditors while maintaining beneficiary interests

• Trustees: Individuals or organizations who legally hold and manage assets on behalf of others, with specific duties outlined in the declaration
• Beneficiaries: People or entities who receive benefits from the trust arrangement, such as family members, business partners, or charitable organizations
• Legal Advisors: Danish lawyers who draft and review declarations to ensure compliance with civil law requirements
• Asset Contributors: Individuals or companies who place their property or assets under trust management
• Financial Institutions: Banks and investment firms that help manage trust assets and ensure proper administration

• Asset Details: Gather complete information about property or assets being placed in trust, including ownership documents and valuations
• Party Information: Collect full legal names, addresses, and roles of all trustees and beneficiaries
• Trust Terms: Define specific management rights, distribution rules, and duration of the trust arrangement
• Legal Requirements: Review Danish civil law compliance needs for your specific trust type
• Documentation: Prepare supporting evidence of asset ownership and any existing agreements affecting the trust
• Platform Usage: Use our automated system to generate a legally sound declaration that includes all mandatory elements

• Trust Details: Clear identification of trust property, purpose, and creation date
• Parties Section: Full legal names and contact details of trustees and beneficiaries
• Powers and Duties: Specific trustee responsibilities, management rights, and decision-making authority
• Distribution Rules: Terms for how and when benefits are distributed to beneficiaries
• Duration Clause: Specified trust period and conditions for termination
• Governing Law: Express statement of Danish law application and jurisdiction
• Execution Block: Signature sections for all required parties with witness provisions

A Declaration of Trust differs significantly from a Trust Agreement in several key aspects under Danish law. While both documents deal with asset management, their structure and application serve different purposes.

• Legal Nature: A Declaration of Trust is a unilateral statement by a trustee acknowledging their role and duties, while a Trust Agreement is a bilateral contract between multiple parties establishing mutual obligations
• Formation Process: Declarations can be created by a single party declaring their trustee status, whereas Trust Agreements require negotiation and agreement between multiple parties
• Flexibility: Declarations offer more straightforward modification options, while Trust Agreements typically need all parties' consent for changes
• Typical Usage: Declarations work well for simple property holding arrangements, while Trust Agreements suit complex, long-term asset management structures with multiple stakeholders