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.

  1. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  4. Trustee

    A person or firm that holds or administers property or assets ...
  5. Heir

    HeirA person who inherits some or all of the estate of another ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
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