What is a Declaration of Trust?
A Declaration of Trust is the document that creates a trust and defines its terms. It identifies who creates the trust, who manages it, who benefits from it, and what property it holds.
The Three Key Roles
Settlor (Grantor / Trustor)
The settlor is the person who creates the trust. They contribute the initial property (the "corpus") and define the terms of the trust — how it should be managed, who the beneficiaries are, and how assets should be distributed. A trust can have multiple settlors.
Trustee
The trustee holds legal title to the trust property and manages it according to the terms in the Declaration. The trustee has a fiduciary duty to act in the beneficiaries' best interests. This includes prudence, loyalty, and impartiality. Learn how to choose a trustee →
Beneficiary
The beneficiary is the person (or people, or entity) who benefits from the trust. The trustee manages the property for their benefit. Beneficiaries can have different types of interests — some receive income, some receive principal, some receive distributions at the trustee's discretion.
What a Declaration of Trust Contains
- Trust name — the name used for banking, property titles, and legal documents
- Settlor identification — who is creating the trust
- Trustee identification — who will manage the trust
- Beneficiary identification — who benefits from the trust
- Trust property — what assets are being placed in the trust
- Trustee powers — what the trustee is authorized to do (invest, sell, distribute, etc.)
- Distribution rules — how and when distributions are made to beneficiaries
- Revocability — whether the trust can be revoked or amended, and by whom
- Succession — who becomes trustee if the original trustee cannot serve
- Governing law — which state's law governs the trust
- Term/duration — how long the trust lasts
Declaration of Trust vs. Certificate of Trust
These are two different documents that serve different purposes:
- Declaration of Trust — creates the trust. It's the full agreement with all terms. Private.
- Certificate of Trust — proves the trust exists. A summary that trustees show to banks and institutions without revealing the full trust terms.
You need both: the Declaration creates the trust, and the Certificate lets you interact with institutions without exposing your private trust details. See the full comparison →
Business Trusts / Private Contract Trusts
A Declaration of Trust can also create a business trust (also called a Private Contract Trust or Massachusetts Trust). In this structure, the trustee holds legal title to business assets for the benefit of the beneficiaries. Business trusts have a long history in common law and are recognized in most states, though treatment varies. Learn more about business trusts →
Does a Declaration of Trust Need to Be Notarized?
Most states do not require notarization for the trust instrument itself, but notarization is strongly recommended. If the trust will hold real property, notarization may be required for recording purposes. Some states require witnesses. Check your state's requirements.