AI Generated British Declaration of Trust
PDF & Word - 2026 Updated

This Declaration of Trust is made on 15 October 2024.

The Settlor is John Michael Smith of 123 Example Street, London, SW1A 1AA.

The Trustees are John Michael Smith of 123 Example Street, London, SW1A 1AA and Jane Elizabeth Doe of 456 Sample Avenue, London, SW1A 1BB.

The Settlor is the sole legal owner of the freehold property known as 123 Example Street, London, SW1A 1AA and registered at HM Land Registry under title number LON123456 (the "Property").

The Settlor wishes to declare that the Property is held upon the trusts set out in this Declaration of Trust and to transfer beneficial ownership of the Property into joint names with Jane Elizabeth Doe as trustees.

The Settlor has transferred the Property to the joint names of the Trustees by a Transfer dated on or about the date of this Declaration of Trust.

The Settlor declares that this is an irrevocable discretionary trust for the benefit of the class of beneficiaries set out below.

The Settlor has no prior agreements or arrangements that relate to the Property being placed into this trust other than as set out herein.

In this Declaration of Trust unless the context otherwise requires words importing the singular number shall include the plural and vice versa where the context so admits.

References to any document or statute shall be construed as references to that document or statute as amended or re-enacted from time to time to the version in force at the date of this Declaration.

Gender-neutral language is used throughout this Declaration of Trust.

The headings in this Declaration of Trust are for convenience only and shall not affect its interpretation.

"Trust Property" means the Property together with all money, investments and other assets from time to time representing the same or added to the trust and all income arising therefrom.

"Beneficiaries" means the discretionary beneficiaries as defined in clause 7.

The Settlor hereby declares that with effect from the date of this Declaration of Trust the Settlor and Jane Elizabeth Doe hold the Trust Property upon the trusts declared in this Declaration of Trust.

This declaration is irrevocable.

The Trust Property is the freehold property known as 123 Example Street, London, SW1A 1AA registered at HM Land Registry under title number LON123456 together with all buildings and fixtures thereon.

The estimated current market value of the Trust Property is £450,000.

The Trust Property is subject to an existing mortgage in favour of ABC Bank plc for approximately £150,000.

The Beneficiaries shall be such of the children and remoter issue of the Settlor as shall be living from time to time and any spouse or civil partner of the Settlor.

The trust is a discretionary trust and no Beneficiary shall have any fixed interest in the capital or income of the Trust Property until the Trustees in their absolute discretion determine otherwise.

The primary objects of the trust are the Settlor's children (including any adopted or step-children) and their issue.

The power of appointing new or additional trustees shall be exercisable by the Settlor during his lifetime and thereafter by the surviving or continuing trustees.

There shall be a minimum number of two Trustees and a maximum number of four Trustees at any time.

The Trustees shall make all decisions by unanimous agreement unless otherwise provided by law.

A Trustee who is also a Beneficiary may exercise all powers and discretions notwithstanding any personal interest.

The Trustees shall have absolute discretion as to the timing, amount and recipient of any distributions of income or capital to any of the Beneficiaries.

The Trustees shall have the power to accumulate income for the benefit of the Beneficiaries for a period of up to 125 years from the date of this Declaration of Trust.

No distribution of capital shall be made during the Settlor's lifetime without the Settlor's written consent.

The trust shall continue until the expiry of the perpetuity period of 125 years from the date of this Declaration of Trust at which time the capital and income shall be held for such of the Beneficiaries as the Trustees shall determine or in default for the Settlor's children in equal shares.

The Trustees may make such provisions for the maintenance, education, advancement or benefit of any Beneficiary (including minors) as they think fit.

The Trustees shall have all the powers of an absolute owner in relation to the Trust Property in addition to the powers conferred by the Trustee Act 1925 and the Trustee Act 2000 (as amended).

The Trustees shall have the power to acquire, hold, insure, repair, improve, sell, mortgage or lease the Trust Property or any part of it.

The Trustees shall have the power to invest the Trust Property in any manner as if they were absolutely entitled to it.

The Trustees shall have the power to borrow money and to charge the Trust Property as security for any borrowing.

The Trustees shall have the power to delegate their powers and discretions in accordance with the Trustee Act 2000.

The Trustees shall have the power to appropriate assets in satisfaction of any share or interest.

The Trustees may carry on any business with the Trust Property only with the consent of all adult Beneficiaries.

The Trustees shall be responsible for the payment of all taxes, including but not limited to income tax, capital gains tax and inheritance tax, arising in respect of the Trust Property or the trust generally.

The Trustees shall have wide powers of investment as set out in the Trustee Act 2000 and may invest in land, shares, securities or any other asset as they see fit without restriction to authorised investments.

The Settlor confirms that this trust is intended to be a relevant property trust for inheritance tax purposes under the Inheritance Tax Act 1984 and that appropriate entries will be made on any relevant inheritance tax returns.

A Trustee may exercise any power or discretion notwithstanding that such Trustee has a conflict of interest or may benefit personally provided that such Trustee acts in good faith.

No Trustee shall be liable for any loss to the trust arising from any conflict of interest where full disclosure has been made to the other Trustees.

The power of appointing new or additional trustees is vested in the Settlor during his lifetime and thereafter in the surviving trustees.

A trustee may retire by giving written notice to the other trustees provided that there remain at least two trustees thereafter or a trust corporation.

A trustee shall cease to be a trustee automatically upon death, mental incapacity or bankruptcy.

The minimum number of trustees shall be two at all times unless a trust corporation is appointed.

The Trustees shall be entitled to be indemnified out of the Trust Property against all liabilities and expenses properly incurred by them in the execution of the trusts and powers of this Declaration of Trust provided that such indemnity shall not extend to liabilities arising from their own fraud, wilful misconduct or gross negligence.