Declaration Of Trust Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Declaration Of Trust, written in plain English, along with examples of how it is used.
What is Declaration Of Trust?
n. The document that creates trust into assets that are placed and is signed by a trustor. The duties, powers of management and distribution of the profits and principal are stated in the document. The trust is managed by an appointed trustee, who may be the party who created the trust.
History and Meaning of Declaration Of Trust
A declaration of trust is a legally binding document that outlines the terms and conditions of a trust, as well as the duties, responsibilities, and rights of both the trustee and the beneficiaries. The origin of trusts can be traced back to medieval England, where they were developed as a way for wealthy landowners to protect their assets and provide for their family members. Today, trusts are commonly used for estate planning, charitable giving, asset protection, and business purposes.
Examples of Declaration Of Trust
- John signed a declaration of trust, appointing his son as the trustee and his daughter as the beneficiary of his estate.
- The company's board of directors approved the declaration of trust, which established a trust fund for the employees' retirement benefits.
- Jane's lawyer prepared a declaration of trust, which transferred ownership of her property to a trust to secure her creditors' claims.
- The court recognized the validity of the declaration of trust, ruling that the trustee had breached his fiduciary duties by mismanaging the trust assets.
Legal Terms Similar to Declaration Of Trust
- Trustee - A person or entity appointed to manage a trust and carry out its obligations.
- Settlor - The person who creates a trust and transfers assets to it.
- Beneficiary - A person or entity entitled to receive a benefit from a trust.
- Fiduciary - A person or entity that owes a duty of loyalty and care to another person or entity.
- Living Trust - A trust that is created during the settlor's lifetime and can be changed or revoked by the settlor.