A Declaration of Trust is a legal document which verifies the conditions under which an asset, such as a property, is held in trust. The agreement is used to formalise the division of property ownership and any other terms agreed upon by the parties. Although titles and shares may indicate otherwise, a declaration of trust reveals the genuine ownership of an asset in the proportions provided by each participant. As a result, it can grant legal protections to a person who is not the official record holder of an asset. Declaring a property in the trust at the Land Registry alerts potential buyers that the registered owner is not the only owner.
In a declaration of trust, “trustees” are assigned to the role of holding property for the benefit of “beneficiaries.” Trustee appointments are made under The Trustee Act 2000, and the appointed trustees are “trusted” to act in the best interests of the beneficiaries at all times.