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Private Trust Agreement Template for England and Wales

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Key Requirements PROMPT example:

Private Trust Agreement

"I need a Private Trust Agreement to establish a family trust for managing our UK property portfolio and investments, with three trustees and discretionary powers for distribution among my children and grandchildren, to be effective from March 2025."

Document background
The Private Trust Agreement serves as the foundational document for establishing and managing private trusts in England and Wales. It is typically used when individuals or entities wish to separate legal ownership from beneficial ownership of assets, whether for estate planning, tax efficiency, or asset protection purposes. The agreement comprehensively details the trust structure, powers, obligations, and administration requirements, ensuring compliance with English trust law while meeting the settlor's objectives. This document is essential for creating legally binding trust arrangements and providing clear guidance for trustees in their fiduciary duties.
Suggested Sections

1. Parties: Identifies settlor, trustees, and beneficiaries

2. Background: Sets out context and purpose of the trust

3. Definitions: Defines key terms used throughout the agreement

4. Trust Declaration: Formal declaration of trust and transfer of assets

5. Powers of Trustees: Detailed powers granted to trustees

6. Trustee Duties: Obligations and responsibilities of trustees

7. Trust Administration: Procedures for managing the trust

8. Beneficiary Rights: Rights and entitlements of beneficiaries

Optional Sections

1. Investment Powers: Specific investment authorities and restrictions for trusts including investment assets

2. Property Management: Provisions for handling real estate when trust includes property assets

3. Protector Provisions: Role and powers of trust protector when trust includes a protector role

4. Foreign Asset Provisions: Handling of overseas assets when trust includes international assets

Suggested Schedules

1. Schedule of Initial Trust Assets: Detailed list of assets initially settled into trust

2. Schedule of Beneficiaries: Complete list of beneficiaries and their respective interests

3. Investment Guidelines: Detailed investment policies and restrictions

4. Trustee Remuneration Schedule: Details of trustee compensation arrangements

5. Letter of Wishes: Non-binding guidance from settlor to trustees

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries
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Relevant Roles
Industries

Trustee Act 1925: Core legislation that defines trustee powers and duties, sets out administrative provisions, and establishes fundamental investment powers for trustees

Trustee Act 2000: Modern update to trust law that introduces statutory duty of care, expands trustees' general powers, and modernizes investment powers and delegation authorities

Trust of Land and Appointment of Trustees Act 1996 (TOLATA): Specific legislation governing trusts involving land, defining trustees' powers regarding property and establishing beneficiaries' rights

Perpetuities and Accumulations Act 2009: Establishes rules against perpetuities, defines accumulation periods, and sets validity periods for trusts

Variation of Trusts Act 1958: Provides mechanism for varying trust terms and protecting interests of beneficiaries

Recognition of Trusts Act 1987: Implements the Hague Convention on the Law Applicable to Trusts, providing framework for international trust recognition

Financial Services and Markets Act 2000: Regulatory framework for financial services and investments, relevant when trust involves investment activities

Pensions Act 1995: Legislation governing pension schemes and trustees' duties regarding pension assets

Income Tax Act 2007: Tax legislation governing income tax treatment of trusts and trust income

Inheritance Tax Act 1984: Determines inheritance tax implications and treatment of trusts for tax purposes

Capital Gains Tax Act 1992: Legislation governing capital gains tax treatment of trust assets and disposals

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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