A declared trust is a type of trust established by the explicit intention of the person creating it, known as the grantor. This trust is also referred to as an express trust or direct trust. In a declared trust, the grantor clearly communicates their desire to create a trust, which holds property or assets for the benefit of designated beneficiaries.
Declared trusts are commonly used in various legal contexts, including estate planning and asset management. They allow individuals to specify how their assets should be distributed upon their death or during their lifetime. This type of trust can be beneficial in family law, real estate, and financial planning. Users can often manage the creation of a declared trust through legal forms available from services like US Legal Forms, which provide templates drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A parent creates a declared trust to manage their assets for their children's education. The trust specifies that funds will be used for tuition and related expenses.
Example 2: An individual establishes a declared trust to hold their real estate property, ensuring it is passed on to their heirs without going through probate. (hypothetical example)
| State | Key Differences |
|---|---|
| California | Requires specific language to establish a declared trust. |
| New York | Allows for oral declarations in certain circumstances. |
| Texas | Requires a written document for the trust to be enforceable. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Express Trust | A trust created intentionally by the grantor. | Similar to a declared trust, but may not always be documented formally. |
| Implied Trust | A trust created by the courts based on the actions or circumstances. | Not established by explicit intent; relies on legal interpretation. |
If you believe a declared trust may be beneficial for your situation, consider the following steps:
For complex situations, seeking legal advice is recommended to ensure compliance with state laws.
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The main purpose is to manage and distribute assets according to the grantor's wishes.