What is a Declaration of Trust?

A Declaration of Trust is an instrument by which a shareholder declares that he/she is holding the share on behalf of another person/entity.


Advanced Subscription Agreements

How to create a Declaration of Trust

1
Create a Zegal Account
2
Make an agreement using Zegal templates
3
Get help from a lawyer anytime
Block Image

Easy to Use Legal Templates

Quickly and easily create any legal agreement for you or your team.

Affordable Plans

Straightforward pricing plans and bespoke packages built to simplify all your legal demands.

Block Image
Block Image

Vast Document Library

Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.

What is the Declaration of Trust?

A Declaration of Trust is an instrument by which a shareholder declares that he/she is holding the share on behalf of another person/entity.

A Declaration of Trust is executed as a deed by the shareholder under whose name the shares are registered, who is referred to as the “nominee”. The person/entity on behalf of whom the shares are held is referred to as the “beneficial owner”.

A Beneficial owner has the privilege of remaining anonymous whereas a Nominee name is written in all the records. A nominee has to sign a Deed of Trust which states that they won’t get any benefit from the shares in the future and are not the legal owner of the shares.

Is a Declaration of Trust legally binding?

A Declaration of Trust is a written statement to appoint a trustee on certain terms and conditions. It is a legally binding document that records the predetermined conditions between joint owners. It is also known as “Deed of Trust”.

How does a Declaration of Trust work?

It basically consists of two parties, trustee and beneficial owner. A trustee lets you use their name to act as the registered owner of the assets or shares but in reality, they only hold the assets/shares for your benefit. So, it will give you a legal advantage in case of any dispute in the future.

Conclusion

A Declaration of Trust is an important instrument that can be used for buying shares by creating a nominee shareholder or it can even be used for buying the property with joint owners.

You Might Also Like

Along with this document, make sure you see these other templates in our library:

The Zegal Template Library

Zegal's template library is a list of essential and premium business templates for your everyday legal needs.

Save money and time without sacrificing quality or missing vital legal requirements. Whether you're a startup or a larger enterprise, Zegal lets anyone create a legal agreement.

Let us take care of the legals so you can focus on running your business.

If you need more help, our "Talk to a Lawyer" feature gives you access to a qualified lawyer to get all the expert advice you need.

Try it for free today!

Related Documents

If you're creating a Declaration of Trust, you may also be interested in the following documents: