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Declaration Of Trust For Shares Template for England and Wales

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Key Requirements PROMPT example:

Declaration Of Trust For Shares

"I need a Declaration of Trust for Shares to establish a trust over 5,000 ordinary shares in my family business, with my brother as trustee holding these shares for the benefit of my three children, to be effective from March 1, 2025."

Document background
A Declaration of Trust for Shares is commonly used in England and Wales when there's a need to separate legal and beneficial ownership of shares. This might occur in family business succession planning, employee share schemes, or tax planning arrangements. The document specifies how trustees should manage the shares, outlines beneficiaries' rights, and ensures compliance with trust law requirements. It provides clarity and protection for all parties involved and helps prevent future disputes about share ownership and control.
Suggested Sections

1. Parties: Identifies the trustee(s) and beneficiary(ies) with full legal names and addresses

2. Background: Explains the context and purpose of the trust arrangement

3. Definitions: Defines key terms used throughout the document

4. Declaration of Trust: The formal declaration establishing the trust over the shares

5. Trust Terms: Core terms governing how the trust will operate

6. Trustees' Powers: Specific powers granted to trustees regarding the shares

7. Duration of Trust: Period for which the trust will exist

Optional Sections

1. Appointment and Removal of Trustees: Process for changing trustees - include if multiple trustees or likely future changes

2. Trustee Remuneration: Terms for paying trustees - include when trustees will be professionally appointed

3. Investment Powers: Specific investment authorities for trustees - include when trust includes active investment management

Suggested Schedules

1. Schedule 1: Share Details: Details of shares held in trust including company name, share class, number of shares

2. Schedule 2: Beneficiaries' Interests: Specific entitlements of different beneficiaries if multiple beneficiaries

3. Schedule 3: Original Share Certificates: Copies of relevant share certificates (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Trustee Act 1925: Primary legislation defining trustees' powers and duties, and setting out administrative provisions for trusts. Essential foundation for trust management.

Trustee Act 2000: Modern legislation establishing statutory duty of care, investment powers, and delegation capabilities for trustees. Updates and modernizes trustee responsibilities.

Companies Act 2006: Comprehensive legislation governing shareholding, share transfers, shareholders' rights, and company registration requirements. Critical for share trust arrangements.

Financial Services and Markets Act 2000: Regulatory framework for financial activities, particularly relevant when shares are held in regulated entities or financial institutions.

Common Law Trust Principles: Fundamental legal principles including the three certainties (intention, subject matter, objects) and fiduciary duties. Forms the basis of trust law.

Law of Property Act 1925: Legislation establishing formal requirements for property transactions, including certain aspects of trust property.

Income Tax Act 2007: Tax legislation governing income from shares held in trust and related tax obligations.

Capital Gains Tax Act 1992: Legislation covering tax implications of capital gains from share disposals within trust arrangements.

Inheritance Tax Act 1984: Tax legislation relevant to the transfer of shares into trust and potential inheritance tax implications.

Fraud Act 2006: Legislation relevant to declarations and representations made in trust documents to ensure validity and prevent fraudulent arrangements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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