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Declaration Of Trust For Shares Template for Ireland

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Key Requirements PROMPT example:

Declaration Of Trust For Shares

"I need a Declaration of Trust for Shares under Irish law to hold 5,000 ordinary shares in my family business in trust for my three children, with equal distribution of dividends and a provision that the shares will vest to them individually when they each turn 25 years old or by January 2025, whichever comes later."

Document background
A Declaration of Trust for Shares is a vital legal instrument used in Ireland when there is a need to separate legal and beneficial ownership of shares. This document is commonly employed in various scenarios, including family business succession planning, corporate restructuring, tax planning, and asset protection arrangements. The declaration formally establishes the trust relationship, clearly identifying the trustee(s) who will hold legal title to the shares and the beneficiary(ies) who will have beneficial ownership. It must comply with Irish trust law principles and the Companies Act 2014, particularly regarding share transfer and registration requirements. The document includes comprehensive details about the shares being held in trust, trustee powers and duties, beneficiary rights, voting arrangements, and dividend distribution mechanisms.
Suggested Sections

1. Parties: Identification of the Trustee(s) and Beneficiary(ies) with their full names and addresses

2. Background: Recitals explaining the context of the trust creation, including details of share ownership and intention to create the trust

3. Definitions: Definitions of key terms used throughout the document, including 'Shares', 'Trust Property', 'Trust Period', etc.

4. Declaration of Trust: The formal declaration establishing the trust, specifying the shares being held in trust

5. Trust Terms: The specific terms under which the shares are to be held, including beneficiary entitlements and distribution provisions

6. Trustee Powers: Enumeration of the powers granted to the trustees in managing the shares and trust

7. Trustee Duties and Responsibilities: Specific obligations and responsibilities of the trustees

8. Dividend and Voting Rights: Provisions regarding the exercise of voting rights and treatment of dividends

9. Duration of Trust: Specification of the trust period and any termination provisions

10. Governing Law and Jurisdiction: Confirmation that the trust is governed by Irish law and subject to Irish courts' jurisdiction

Optional Sections

1. Trustee Remuneration: Include when trustees are to be compensated for their services

2. Trustee Indemnity: Optional additional protection for trustees, particularly in complex arrangements

3. Appointment and Removal of Trustees: Include when specific provisions for trustee succession are required

4. Trust Protector Provisions: Include when a trust protector is to be appointed to oversee the trust

5. Variation of Trust: Include when specific power to vary trust terms is required

6. Conflict Resolution: Include when specific dispute resolution procedures are desired

7. Anti-Money Laundering Provisions: Include for high-value trusts or when required by regulatory compliance

Suggested Schedules

1. Schedule 1 - Details of Shares: Detailed description of the shares held in trust, including share certificates numbers, class, and nominal value

2. Schedule 2 - Initial Trust Assets: Complete inventory of all assets initially settled into the trust

3. Schedule 3 - Beneficiary Entitlements: Detailed breakdown of beneficiary interests and distribution provisions

4. Appendix A - Company Information: Details of the company whose shares are held in trust

5. Appendix B - Trustee Investment Powers: Detailed provisions regarding permitted investments and investment policy

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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Financial Services

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Corporate Lawyer

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Company Secretary

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