This Declaration of Trust creates a business trust for the control and management of
assets and property. A business trust is a unique entity that is generally classified as an
association, taxed as a corporation, and organized under trust law principles. This
Declaration of Trust sets up the framework for the operation of the business, the powers
and duties of the trustee, and the interests of the beneficiaries. This document contains
numerous standard provisions and may be customized to fit the specific needs of the
parties. This should be used when setting up a business trust.
DECLARATION OF TRUST
THIS DECLARATION OF TRUST (the â€œDeclarationâ€), made as of ___________ [Instruction:
Insert Date], among ___________ [Instruction: Insert Name of Trustor1], ___________
[Instruction: Insert Address], ___________ [Instruction: Insert Name of Trustor 2],
___________, ___________ [Instruction: Insert Address] and [Instruction: Insert Name of
Trustor 3], ___________ [Instruction: Insert Address] (individually and collectively, the
â€œTrustorsâ€) and ___________ [Instruction: Insert Name of Trustee], ___________
[Instruction: Insert Address] (the â€œTrusteeâ€).
1. Classification of organization. This Declaration is intended to create a business trust (the
"Trust"), and not a partnership or a joint-stock association.
2. Trust Name, Purpose and Location.
A. The Trust created in this Declaration shall be called the ___________ [Instruction:
Insert Trust Name] Trust.
B. The Trustee, in the name of the Trust, may engage in any general business purpose, and
perform all acts that the Trustee deems necessary in furtherance of such purpose.
C. The principal office of the Trust is located at ___________ [Instruction: Insert
3. Transfer to Trustee.
A. Appointment. The Trustors hereby appoint ___________ [Instruction: Insert Name of
Trustee] Trustee under this Declaration. If, at any time, the Trustee is unable or unwilling to
serve as Trustee, the Trustors may appoint a substitute or successor Trustee. At all times that
Trustee is serving hereunder, Trustee shall be compensated at the rate of ___________ Dollars
($____) [Instruction: Insert Amount] per annum, payable in equal monthly installments.
B. Transfer. The Trustors transfer to the Trustee all of their right, title, and interest in the
property described in Exhibit â€œAâ€, attached hereto and incorporated herein (the â€œPropertyâ€).
C. Trust Res. The Trustee will hold the Property, all property hereafter acquired, and all
income and profits (collectively the "Trust Res"), in trust, and shall manage, administer, collect,
and dispose of the Trust Res for the benefit of persons who acquire shares of beneficial interest
in the Trust (the "Beneficiaries").
D. Power of Trustee. The Trustee shall have absolute and exclusive power and authority to
manage the Trust Res and to conduct the Trust business, exercisable without the consent of the
Beneficiaries, to the same extent as if the Trustee was the owner of such property and business,
and limited only as specifically set forth in this Declaration. The Trusteeâ€™s powers shall include,
but shall not be limited to or by, the following:
i. to undertake or engage in any type of commercial, industrial, or other business or
ii. to purchase or otherwise acquire real or personal property, and to sell, exchange,
mortgage, grant a security interest in, pledge, or in any manner deal with the Trust Res or any
part thereof or any interest therein, upon such terms and for such consideration as they deem
iii. to incur indebtedness, borrow or lend money with or without security, execute,
accept, discount, negotiate, and deal in commercial paper and evidences of indebtedness, and
execute any written instruments;
iv. to prosecute and defend all actions affecting the Trust and/or the Trust Res, and to
compromise or settle any suits, claims, or demands, or waive or release any rights relating to the
v. to employ officers, agents, attorneys, and employees; and
vi. to adopt and enforce such bylaws, not inconsistent with this Declaration, as they may
from time to time deem proper.
4. Term. The Trust shall commence upon the execution hereof and continue until ___________
[Instruction: Insert Date], except that it may be terminated at any earlier time by the Trustee,
provided that Beneficiaries that hold Shares entitling them to exercise three quarters (3/4) of the
voting power of the Trust assent to said termination. Assent must be given by voting at a meeting
of Beneficiaries for that purpose, pursuant to notice given as provided in paragraph 7.
5. Shares of Beneficial Interest. The Beneficial interest in the Trust shall consist of
___________ (____) [Instruction: Insert Number] shares (each a â€œShareâ€), each with a par
value of ___________ Dollars ($____)[Instruction: Insert Amount]. The Trustee may sell,
exchange, or acquire Shares for such sums as the Trustee considers proper. The Trustee shall
issue certificates to the purchasers of Shares (each, a â€œShare Certificateâ€) in such form as the
Trustee deem proper, evidencing the beneficial interests of the purchasers(s). The purchaser(s) of
Shares shall be the Beneficiaries of the Trust, and shall be bound by the provisions of this