{"id":9503,"date":"2017-06-09T12:17:25","date_gmt":"2017-06-09T04:17:25","guid":{"rendered":"https:\/\/zegal.com\/declaration-of-trust\/"},"modified":"2024-12-27T17:27:49","modified_gmt":"2024-12-27T09:27:49","slug":"declaration-of-trust","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-hk\/declaration-of-trust\/","title":{"rendered":"Declaration of Trust"},"content":{"rendered":"

<\/span>What is the Declaration of Trust?<\/span><\/h2>\n

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

A Declaration of Trust<\/strong> is executed as a deed by the shareholder under whose name the shares are registered, who is referred to as the \u201cnominee\u201d. The person\/entity on behalf of whom the shares are held is referred to as the \u201cbeneficial owner\u201d.<\/p>\n

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\u2019t get any benefit from the shares in the future and are not the legal owner of the shares.<\/p>\n

<\/span>Is a Declaration of Trust legally binding?<\/span><\/h2>\n

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 \u201cDeed of Trust”.<\/p>\n

<\/span>How does a Declaration of Trust work?<\/span><\/h2>\n

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.<\/p>\n

<\/span>Conclusion<\/span><\/h2>\n

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.<\/p>\n

<\/span>You Might Also Like<\/span><\/h2>\n

Along with this document, make sure you see these other templates in our library:<\/p>\n