Declaration of Trust
Definition - What does Declaration of Trust mean?
A declaration of trust is a legal tool used in estate planning. It is created by and reflects the wishes of the rightful owner of specific property with regard to the distribution of the item(s). It usually sets forth who should receive the item(s), when they will receive it/them, how the item(s) should be used, and so on.
Justipedia explains Declaration of Trust
A declaration of trust is usually, but not always, a written document. Verbal arrangements regarding the distribution of property are also acceptable in some jurisdictions. Regardless of form, it generally contains similar information, including:
- The type of property that's been set aside.
- The name of the person who owns the property when the declaration is made.
- The person or people tasked with distributing it, and the circumstances under which they can do so.
- The name of the recipient(s).
- In some cases, it also includes stipulations regarding changes to or revocation of the arrangement.