Declaration Of Trust

First, a few examples:

"Sure honey, I don't mind if you take an overnight work trip with your ex."

"I know we just met, but I'd be happy to take your bag through airport security for you."

"Why wouldn't I loan money to a Nigerian prince?"

In the world of finance, the kind of trust involved is a little different. Here, we're talking about the kind of trust you get lawyers to create for you. The declaration of trust represents the legal document that sets up this process.

A trust is a legal entity that holds ownership of a property for the benefit of someone else. You've heard of "trust fund babies"—these are people (stereotypically the no-good kids of rich people) who don't directly control the assets in the trust. However, they receive the income or value generated by the assets. They are "beneficiaries," while the people overseeing the trust are known as "trustees." Think: those in whom people trust.

There are plenty of other reasons to set up a trust: estate planning, for the benefit of non-profits, etc. A declaration of trust acts as the trust's birth certificate, creating the structure and outlining the assets included, the trustees, and the beneficiaries.

"I trust you." As you close your eyes, arms across chest, and fall backwards onto the outstretched loving arms of your compatriots...just before you hit the ground.