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Declaration Of Trust For Shares Template for Singapore

A Declaration of Trust for Shares under Singapore law is a legal document establishing a trust relationship where a trustee holds shares on behalf of beneficiaries. It clearly defines the separation between legal and beneficial ownership of shares, specifying the trustee's duties and beneficiaries' rights. The document complies with Singapore's Trustees Act and Companies Act requirements, providing a framework for share ownership management and distribution of benefits.

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What is a Declaration Of Trust For Shares?

A Declaration of Trust for Shares is commonly used in Singapore when there's a need to separate legal and beneficial ownership of shares, often in family wealth planning, corporate restructuring, or employee share schemes. The document establishes clear evidence of trust arrangements, protecting both trustee and beneficiary interests while ensuring compliance with Singapore's trust and corporate laws. It includes detailed information about the shares held in trust, the parties involved, and the terms governing the trust relationship, making it essential for proper trust administration and corporate governance.

What sections should be included in a Declaration Of Trust For Shares?

1. Parties: Identifies the trustee(s) and beneficiary(ies)

2. Background: Explains circumstances leading to trust creation and ownership of shares

3. Definitions: Defines key terms used throughout the declaration

4. Declaration of Trust: Core section declaring the trust arrangement and beneficial ownership

5. Trustee Powers and Duties: Details the powers and obligations of the trustee

6. Trust Terms: Specifies duration, distribution rules, and management of trust assets

7. Governing Law: Specifies Singapore law as governing law

What sections are optional to include in a Declaration Of Trust For Shares?

1. Remuneration of Trustee: Include when trustee is to receive compensation for professional trustees or complex arrangements

2. Protector Provisions: Powers and duties of trust protector, used when trust includes a protector role

3. Investment Powers: Specific investment authorities for trustee, used when active investment management is anticipated

4. Variation Clause: Mechanism for varying trust terms, used when flexibility needed for future changes

What schedules should be included in a Declaration Of Trust For Shares?

1. Schedule 1: Trust Property: Details of shares held in trust including company name, number and class of shares

2. Schedule 2: Beneficiaries: List of beneficiaries and their respective entitlements

3. Appendix A: Share Certificates: Copies of relevant share certificates

4. Appendix B: Company Constitution: Copy of constitution of company whose shares are held in trust

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

黑料视频

Document Type

Trust Deed

Cost

Free to use

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Declaration Of Trust For Shares

A Singapore law-governed document establishing a trust relationship for shareholding, defining trustee duties and beneficiary rights.

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