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Floating Deed Of Trust for the United Kingdom

Floating Deed Of Trust Template for England and Wales

A Floating Deed of Trust is a legal document under English and Welsh law that creates a trust arrangement where the charged assets can change in quantity and character while remaining subject to the security interest. It allows businesses to continue using and dealing with the secured assets in the ordinary course of business until a specified event occurs. The document establishes the rights and obligations of trustees, defines the trust property, and sets out the terms under which the trust operates.

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Floating Deed Of Trust

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What is a Floating Deed Of Trust?

A Floating Deed of Trust is commonly used in commercial financing transactions under English and Welsh law where security is required over a changing pool of assets. This document is particularly relevant when businesses need to maintain operational flexibility while providing security to lenders. The floating nature allows companies to continue trading with the secured assets until a crystallization event occurs. The document typically includes detailed provisions about the trust property, trustee powers, beneficiary rights, and enforcement mechanisms. It's particularly useful in scenarios involving multiple lenders or complex security arrangements where a trust structure provides administrative efficiency.

What sections should be included in a Floating Deed Of Trust?

1. Parties: Identifies settlor, trustees, and beneficiaries

2. Background: Sets out context and purpose of the trust

3. Definitions: Defines key terms used throughout the deed

4. Declaration of Trust: Formal creation of trust and transfer of assets

5. Trust Powers: Details powers granted to trustees

6. Administrative Provisions: Day-to-day management procedures

7. Trustee Provisions: Appointment, retirement, and removal of trustees

What sections are optional to include in a Floating Deed Of Trust?

1. Investment Powers: Specific investment authorities beyond statutory powers - include when specific investment restrictions or permissions are required

2. Beneficiary Provisions: Special conditions for beneficiaries - include when complex beneficiary arrangements exist

3. Tax Provisions: Specific tax planning arrangements - include when trust has specific tax objectives

What schedules should be included in a Floating Deed Of Trust?

1. Schedule of Assets: Detailed list of trust property

2. Investment Guidelines: Specific investment policies and restrictions

3. Beneficiary Details: Full details of beneficiaries and their entitlements

4. Powers of Appointment: Details of any powers of appointment over trust assets

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Trust Deed

Cost

Free to use
Relevant legal definitions






































Clauses

































Industries

Trustee Act 1925: Core legislation defining trustee powers and duties, rules for trustee appointments and retirement, and establishing fundamental investment powers

Trustee Act 2000: Modern legislation updating trustee powers, establishing statutory duty of care, and covering delegation of trustee functions

Law of Property Act 1925: Foundational legislation governing the creation and transfer of property interests, crucial for trust property dealings

Financial Services and Markets Act 2000: Regulatory framework for financial activities, including requirements for regulated trustees and trust-related financial services

Perpetuities and Accumulations Act 2009: Legislation governing rules against perpetuities and restrictions on income accumulation in trusts

Charities Act 2011: Specific legislative requirements applicable if the trust has charitable purposes

Money Laundering Regulations 2017: Regulations requiring trust registration with the Trust Registration Service and HMRC compliance

Common Law Three Certainties: Legal principle requiring certainty of intention, subject matter, and objects for valid trust creation

Fiduciary Duties: Common law principles establishing trustees' fundamental obligations of loyalty, care, and good faith

Delegation Rules: Common law and statutory rules governing when and how trustees may delegate their powers and responsibilities

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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