Revocable Declaration Of Trust Template for England and Wales

A Revocable Declaration of Trust is a powerful legal instrument that allows you to create a trust arrangement while maintaining the flexibility to modify or terminate it entirely. Under England and Wales law, this document enables you to transfer assets into trust for the benefit of designated beneficiaries while preserving your right as settlor to revoke the trust or change its terms when your circumstances evolve.

When do you need this document?

You will need a Revocable Declaration of Trust when planning your estate and seeking to maintain control over your assets during your lifetime. This document is particularly valuable if you want to provide for family members or beneficiaries while retaining the ability to adapt to changing personal or financial circumstances. It serves as an effective tool for managing family wealth, protecting assets from potential creditors, and ensuring smooth succession planning. Unlike irrevocable trusts, this arrangement gives you the peace of mind that comes with knowing you can alter or dissolve the trust if your needs change.

Key legal considerations

When drafting your Revocable Declaration of Trust, you must carefully consider the scope of trustees' powers and duties under the Trustee Act 1925 and 2000. The document should clearly define the trust property, specify the beneficiaries' rights, and outline the circumstances under which you can exercise your power of revocation. You need to ensure that trustees understand their statutory duty of care and have appropriate powers of investment and delegation. The declaration must also address how trust income and capital will be distributed, whether trustees can accumulate income, and what happens to trust property upon revocation. Consider including provisions for appointing successor trustees and dealing with conflicts of interest.

Legal requirements in England and Wales

Your Revocable Declaration of Trust must comply with several key pieces of legislation governing trust arrangements in England and Wales. The Trustee Act 1925 establishes the fundamental framework for trustee powers and duties, while the Trustee Act 2000 updates investment powers and introduces the statutory duty of care. If your trust includes real estate, you must ensure compliance with the Law of Property Act 1925 and the Trusts of Land and Appointment of Trustees Act 1996, which govern how trustees can deal with land. The Perpetuities and Accumulations Act 2009 sets limits on how long trusts can last and restricts income accumulation periods. While the document does not require registration with any government body, it must be properly executed and witnessed according to English law requirements. You should also consider the tax implications, as revocable trusts are typically treated as transparent for income tax purposes, meaning you remain liable for tax on trust income.