Creation of trusts—by declaration


Published by a UUÂãÁÄÖ±²¥ Private Client expert
Practice notes

Creation of trusts—by declaration


Published by a UUÂãÁÄÖ±²¥ Private Client expert

Practice notes
imgtext

Express lifetime declarations

Where a trust is created by an express lifetime declaration, the Settlor simply declares that they hold the trust property on trust for the specified person or object absolutely. The settlor must be unequivocal in their declaration and should communicate the terms of the trust to the beneficiaries. The following must be present:

  1. •

    there must be property capable of being subjected to a trust

  2. •

    the trust must meet the Requirements for formal validity

  3. •

    the terms of the trust must be sufficiently certain (essential validity)

  4. •

    the purpose of the trust must not be unlawful

Evidential requirements—personalty

Provided the conditions for the essential validity of the trust are fulfilled, a declaration of trust in respect of personalty (other than an equitable Interest) may be declared:

  1. •

    in writing

  2. •

    orally or

  3. •

    (in exceptional cases) by conduct

There are no legal requirements as to the form of a declaration of trust of personalty. However, it is good practice to ensure that all the terms of such a trust are contained

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Settlor definition
What does Settlor mean?

A settlor is the term given to an individual setting up assets under a trust. The settlor agrees the provisions of the trust deed, appoints the trustees and specifies the beneficiaries under the trust.

Read more

Popular documents

Nature and classification of trusts—constitution of trusts

Nature and classification of trusts—constitution of trustsConstituting the trustIn general no trust is created, whatever intention the settlor has manifested, unless legal title is vested in the trustees. This is known as constituting the trust. The trustees must have control of the property. If

Trustees—power of advancement

Trustees—power of advancementThe trustees are under a duty to manage the trust fund as to both income and capital until the beneficiary reaches the vesting age.Note that on 27 February 2023 the Marriage and Civil Partnership (Minimum Age) Act 2022 came into force meaning that on or after this date

Creation of trusts—life insurance trusts

Creation of trusts—life insurance trustsDefining life insurance trustsA life insurance trust usually involves either:•an assignment of an insurance policy together with a declaration of trust, or•the creation of a trust containing an express assignment of the policyReasons to consider using a life

If planning permission imposes restrictions on a licensed premises opening hours, once operational can

If planning permission imposes restrictions on a licensed premises opening hours, once operational can the personal licence holder apply for a Temporary Events Notice (TEN) to open for longer hours than those permitted in the planning permission?To use any property for a licensable activity both