Declaration Of Trust Definition
A declaration of trust is a legal act in which an individual acknowledges or admits that the property being held by him belongs to another person or for the benefit of another individual. A declaration of trust can either be done orally or in the form of a written document. An individual that makes a declaration of trust holds the right to manage a property or an asset on behalf of another person.
The provision that allows an individual to manage a property for the benefit of another is contained in the Trustee Act of 2000. In this arrangement, a trust grantor designates a property, asset or security to a financial institution or individual to administer on their behalf.
A Little More on What is a Declaration Of Trust
A declaration of trust has specific objectives, this includes who the trustee can be and who the trust is in benefit of. In accordance to the Trustee Act of 2000, there are certain information that must be outlined before a declaration of trust can be made. The trustee, the powers they hold and the individual that owns the property or entitled to its benefits must be clearly stated. If the trust can be adjusted, the person that can adjust it must be stated as well.
Although, people commonly make a declaration of trust in writing, it can be made orally. The type of investment the trustee can engage in with the property, assets or securities must also be included.
Declaration of Trust in the U.K.
In the U.K, a declaration of trust indicates that an individual administers a property, asset or security for the benefit of the true owner. This trust must clearly indicate what the property is and other details about the property or asset being held by a trustee. If a trustee is to be replaced at any time, the individual that would serve as a replacement should be included.
The Trustee Act of 2000 governs a declaration of trust in the U.K. The trust grantor (the individual who creates the trust) must be the legitimate owner of the title, property, assets or securities.
Reference for “Declaration Of Trust”
- https://www.rocketlawyer.co.uk › Legal Guides › Declaration of trust