Creation of trusts—parties, recitals and testatum
Creation of trusts—parties, recitals and testatum

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

  • Creation of trusts—parties, recitals and testatum
  • Common misconceptions
  • Date and opening words
  • Parties
  • Recitals
  • Testatum

Common misconceptions

There are a number of common misconceptions concerning the standard opening words used in settlement deeds, for instance:

  1. it is not necessary for the trustees to be parties to the deed of settlement—the main advantage of including them is that by executing the deed they will accept the trusteeship and become familiar with the terms of the trust (note that once the trusteeship has been accepted it cannot be disclaimed)

  2. full names and addresses are for identification purposes only and do not affect the validity of the settlement

  3. although it is desirable for a date to be inserted, absence of a date does not affect validity of the settlement—a trust only comes into effect (whatever date may be inserted) when the trustees are holding property in accordance with its terms

  4. offshore trusts may involve a protector, the appointment of which is designed to enable some control to be exercised in relation to overseas trustees; the protector may be (but does not have to be) a party to the settlement deed

Date and opening words

Usually the date on which the settlement was made is set out at the beginni