PandaTip: This declaration of trust template — also known as a mandatory declaration or a nominee declaration — is suitable for use only where a nominee (or mandatory) is holding shares (or some other asset) in name only for someone else (the beneficiary). In a nominee arrangement the legal owner has no rights whatsoever over the assets he holds or their income and he cannot act without instruction from the legal owner. Also, the legal owner can terminate the relationship at any point and is also absolutely entitled to all benefits arising from assets. This template declaration of trust is not suitable for the creation of a discretionary trust, in which case you should use our trust deed template.
Declaration of Trust Template
I, the undersigned [NOMINEE], of [NOMINEE ADDRESS] (the “Nominee”) do hereby acknowledge and declare that I hold all those assets listed in the annexed Schedule 1 (the “Assets”) registered in our name as nominee of and trustee for and on behalf of [BENEFICIARY] of [BENEFICIARY ADDRESS] (the “Beneficiary”).
I hereby irrevocably undertake not to transfer, deal with or dispose of the Assets save as the Beneficiary may from time to time direct in writing or at the direction of his executors.
I hereby irrevocably assign to the Beneficiary the right to receive any and all benefit from the Assets including all rights to income of any sort which may be receivable from the Assets from time to time and all other rights including rights to capital and voting rights.
I hereby declare that with the exception of the obligation to hold and dispose of the Assets and its income only at the direction of the Beneficiary I have otherwise received the Assets free from any and all obligations including but not limited to the payment of unpaid capital (if any) and the payment of taxes which shall remain the exclusive obligation of the Beneficiary.
I hereby expressly and irrevocably undertake that on receipt of written instruction from the Beneficiary I will promptly transfer the legal title of Assets to the Beneficiary or to any other third-party as he may direct.
I further undertake not to conduct or present myself to any third-party as the beneficial owner of the Assets nor to cause or allow any charge, lien or mortgage over the Assets save at the express instruction of the Beneficiary in writing.
I expressly declare that all the above undertakings are made irrevocably and that save for the legal title I have absolutely no interest in or rights over the Assets.
Dated this [DATE] day of [MONTH], [YEAR].
PandaTip: List all the assets that will be held by the nominee here in as much detail as possible. For example: 500 Shares of 1 USD each in ABC Corporation Ltd a company incorporated in England and Wales with registered number 12345C and having its registered office at Fourteenth Floor, Office Towers, Main Street, London, UK.