What is a Trust Document

A trust document is an instrument that generally signifies matters related to a trust property.  The need of such kind of document generally arises when an owner decides to transfer his property to another party for the benefit of a third party. However, a legal owner can also create a trust property without transferring it to any one else and just by declaring that the property henceforth would be used for the benefit of its beneficiary. Hence, the purpose of a document related to trust can be varied but all of them must follow certain factors in order to make its significance as a legal paperwork. The factors that are needed to be maintained for any kind of trust document are as follows:

  • Trust is generally of two types- revocable or irrevocable. Therefore, prior preparing any kind of document, one must ensure its nature so that it helps in explicating the lineaments accordingly.
  • The document must essentially give an overview of the trusted property or assets that is being decided to be transferred.
  • Irrespective of the kind of document, one must always ensure to specify the name of the beneficiaries and trustees of the following property in question.
  • It should also mention how the revenue and the income obtained from the trust would be distributed.
  • The document should bear a unique code for future reference and the date of presenting it in order to keep a track of it.
  • Whatever be its nature, a trust document must bear authorization of the concern bodies by which it is being released. This is important; as such kind of documents are often referred for legal purposes.

Apart from ensuring all the above points, one must also present a trust document abiding by the laws of the country subjected to its matter.

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