What is an Express Trust and The Elements of a Declaration
Feb 03, 2023An express trust is a type of trust that is created by the explicit declaration or intention of the settlor, typically through a written document such as a trust agreement. In an express trust, the terms and conditions of the trust, including the purpose, administration, and distribution of the trust assets, are clearly stated and agreed upon by the settlor. Express trusts can be used for a variety of purposes, including estate planning, asset protection, and tax planning. The trustee is responsible for carrying out the terms of the trust and managing the assets in accordance with the settlor's instructions.
A trust declaration, also known as a trust agreement, typically includes the following elements:
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Settlor: The person who creates the trust, also known as the grantor or trustor.
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Trustee: The person or entity appointed to manage and administer the trust assets on behalf of the beneficiaries.
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Beneficiaries: The individuals or entities who will receive the benefits of the trust assets.
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Trust Property: The assets or property that are placed in the trust.
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Purpose: The specific objective or goal of the trust, such as providing for a beneficiary's education or managing assets for estate planning purposes.
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Powers and Duties of the Trustee: The responsibilities and obligations of the trustee, including the power to invest and manage the trust assets.
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Distribution of Trust Assets: The terms and conditions for distributing the trust assets to the beneficiaries, including the timing and manner of distribution.
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Termination: The conditions under which the trust will terminate, such as the death of the last beneficiary or the accomplishment of the trust's purpose.
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Amendment: The procedure for amending the trust agreement in the future.
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Governing Law: The state or jurisdiction whose laws will govern the administration and interpretation of the trust.
These are the basic elements of a trust declaration, but the terms and conditions may vary depending on the specific needs and goals of the settlor.
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