Declaration Of Trust for the United Kingdom

Declaration Of Trust Template for England and Wales

A Declaration of Trust is a legal document used in England and Wales that formally records the beneficial ownership of property or assets held by trustees. It establishes the terms under which trustees hold assets, defines beneficiaries' rights, and sets out trustee powers and responsibilities. The document creates certainty about ownership arrangements and helps prevent future disputes about beneficial interests.

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What is a Declaration Of Trust?

A Declaration of Trust is commonly used in England and Wales when property or assets are held by one party for the benefit of others. This document is essential when multiple parties contribute to property purchase, in family arrangements, or for asset protection purposes. The Declaration of Trust clearly defines ownership shares, management responsibilities, and beneficiary rights. It provides legal protection and clarity for all parties involved, particularly in situations where legal and beneficial ownership differ. The document must comply with English trust law principles and relevant statutory requirements.

What sections should be included in a Declaration Of Trust?

1. Parties: Details of trustees and beneficiaries

2. Background: Circumstances leading to trust creation and property details

3. Definitions: Key terms used throughout the declaration

4. Declaration of Trust: Core trust terms and beneficial interests

5. Trustee Powers: Specific powers granted to trustees

6. Trust Duration: Term of the trust and termination provisions

What sections are optional to include in a Declaration Of Trust?

1. Investment Powers: Specific investment authorities beyond statutory powers - for trusts with significant financial assets

2. Delegation Provisions: Specific delegation authorities for trustees - for complex trusts requiring professional management

3. Appointment and Removal of Trustees: Process for changing trustees - recommended for long-term trusts

What schedules should be included in a Declaration Of Trust?

1. Schedule of Assets: Detailed list of trust property

2. Schedule of Beneficiaries: Full details of beneficiaries and their entitlements

3. Powers of Investment: Detailed investment guidelines and restrictions

4. Property Description: Detailed description of any real property held in trust

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Trust Deed

Cost

Free to use
Industries

Trustee Act 1925: Core legislation defining trustee powers, duties, and administrative provisions including investment powers. Forms the foundational framework for trust management.

Trustee Act 2000: Modern update to trust law covering trustee's duty of care, investment powers, and delegation of trustee functions. Provides contemporary standards for trust administration.

Law of Property Act 1925: Fundamental legislation governing property ownership, legal and beneficial interests, and formalities required for land transfers in trust contexts.

Land Registration Act 2002: Regulates the registration of trust interests in land, protection of third parties, and notice requirements for land-related trusts.

Trusts of Land and Appointment of Trustees Act 1996: Specific legislation governing trusts of land, defining rights of beneficiaries and powers of trustees (commonly known as TOLATA).

Perpetuities and Accumulations Act 2009: Sets out rules against perpetuities and governs the accumulation of income within trusts.

Fraud Act 2006: Establishes requirements for writing and signatures in trust documents and includes provisions to prevent fraudulent declarations.

Finance Act provisions: Various Finance Act provisions covering tax implications and Stamp Duty Land Tax considerations for trusts.

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