Why does the company establishment suite of documents not have a declaration of trust where there is a shareholder who is acting as trustee for a trust?

Question:

Why does the company establishment suite of documents not have a declaration of trust where there is a shareholder who is acting as trustee for a trust?

Answer:

Any declaration of trust can have a range of potentially adverse transaction cost consequences as well as trust law ramifications.

Where the legal owner of shares is holding them beneficially as trustee, the only trust instrument that is relevant is the trust deed for that existing trust.

If third parties (for example financiers) request a copy of the ‘declaration of trust’, the trust deed for the trust should be provided.

In no circumstances should any further declaration of trust be prepared

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