Creation of trusts—definitions
Creation of trusts—definitions

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Creation of trusts—definitions
  • Table of contents
  • Clause headings
  • Where to record definitions
  • Common definitions

Table of contents

Settlement deeds are often long and complex documents. Consequently, modern precedents generally start by setting out in a table of contents the constituent parts of the deed, showing the operative parts separately from the administrative provisions. A table simplifies the use of the settlement. However, it is important that the table does not affect the meaning of the settlement.

Clause headings

Some solicitors drafting settlement deeds prefer to give each clause a heading. Clause headings enable a person reading the settlement deed to see quickly and clearly what each clause concerns and can be useful once the settlement is in use. For example, a trustee may want to know what powers of investment the trustees have rather than having to read every clause until finding the investment clause, the trustee need only look at the clause headings to identify the one required.

Personal preference dictates as to whether or not clause headings are used. For consistency of style, either use clause headings for every clause or not at all.

If clause headings are in fact used, consider providing by an additional clause that the clause headings are only for administrative convenience and do not affect the construction of the settlement deed. For example:

'Clause headings

The headings to the clauses and paragraphs of this settlement are for the purposes