Creation of trusts—definitions

Published by a LexisNexis Private Client expert
Practice notes

Creation of trusts—definitions

Published by a LexisNexis Private Client expert

Practice notes
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Table of contents

Trust deeds are often long and complex documents. Consequently, modern precedents may start by setting out in a table of contents the constituent parts of the deed, showing the operative parts separately from the administrative provisions. A table simplifies the use of the trust. However, it is important that the table does not affect the meaning of the trust.

Clause headings

Some solicitors drafting trust deeds prefer to give each clause a heading. Clause headings enable a person reading the trust deed to see quickly and clearly what each clause concerns and can be useful once the trust is in use. For example, a trustee may want to know what powers of investment the trustees have rather than having to read every clause until finding the investment clause. The trustee then need only look at the clause headings to identify the one required.

Personal preference dictates whether or not clause headings are used. For consistency of style, either use clause headings for every clause or not at all.

If clause headings are used, consider providing

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Jurisdiction(s):
United Kingdom
Key definition:
Trust definition
What does Trust mean?

An equitable obligation (ie a duty imposed by the law of equity), binding the trustee to deal with property over which he has control (the trust property), for the benefit of persons (the beneficiaries), of whom the trustee may be one, and any one of whom may enforce the obligation.

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