Declaration Of Trust

DEFINITION of 'Declaration Of Trust'

A statement made by the title holder of a piece of property that the property is being held for the benefit of another person. The property is placed in a trust, with a trustee overseeing the asset. The declaration outlines who the trust is in benefit of, who can amend or revoke the trust (if it can be amended at all), who will serve as trustee and what powers the trustee holds, and information regarding what is to happen if a beneficiary wants to receive distributions.

BREAKING DOWN 'Declaration Of Trust'

A declaration of trust is not required to be made in writing, but it often is. Some states require the declaration to be made in writing, while other states allow oral declarations to be made.

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RELATED FAQS
  1. Is there a time limit on collecting on the trust fund?

  2. What percentage of withdrawals from a trust fund is taxed?

    I have inherited a trust fund. This is the first time I have considered pulling money from the account.  ... Read Answer >>
  3. How do we get a better understanding of the terms of a trust?

    My husband has been left several discretionary trusts both irrevocable and revoc... Read Answer >>
  4. What are the requirements that a trust needs to meet to be qualified?

    The requirements that a trust must meet to be qualified are as follows: The trust must be a valid trust under state law or ... Read Answer >>
  5. How to name a trust as a secondary beneficiary on life insurance?

    My spouse is the first beneficiary on my life policy. How do I correctly word my trust as the secondary? Do I specially name ... Read Answer >>
  6. What are the keys to setting up a trust fund?

    Setting up a trust to secure your assets for a beneficiary allows you to set the terms under which the beneficiaries are ... Read Answer >>
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