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Living Trust Deed Template for England and Wales

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Key Requirements PROMPT example:

Living Trust Deed

"I need a Living Trust Deed to establish a trust for my London property and investment portfolio, with my two adult children as beneficiaries and my solicitor as the professional trustee, including specific provisions for quarterly income distributions starting from March 2025."

Document background
A Living Trust Deed is commonly used in England and Wales when individuals wish to establish a formal structure for managing their assets during their lifetime and ensuring smooth transition after death. The document specifies the trust's terms, trustees' powers, beneficiaries' rights, and distribution provisions. It's particularly useful for tax planning, protecting assets, and providing for family members or other beneficiaries in a controlled manner. The Living Trust Deed must comply with English trust law principles and can be especially valuable for complex family situations or substantial assets requiring sophisticated management.
Suggested Sections

1. Parties: Details of settlor, trustees, and beneficiaries including their full names, addresses and capacities

2. Background: Purpose of the trust, context for its creation, and intention of the settlor

3. Definitions: Key terms used throughout the deed including definitions of Trust Property, Trust Period, Beneficiaries, etc.

4. Trust Declaration: Formal declaration creating the trust, specifying the trust property and the terms on which it is to be held

5. Trust Powers: Comprehensive list of powers granted to trustees including investment, management, and distribution powers

6. Distribution Provisions: Rules and mechanisms for distributing trust assets and income to beneficiaries

7. Trustee Provisions: Procedures for appointment, retirement, and replacement of trustees, plus their duties and protections

Optional Sections

1. Letter of Wishes: Non-binding guidance from settlor to trustees regarding the exercise of discretionary powers

2. Incapacity Provisions: Special provisions dealing with potential future incapacity of the settlor or beneficiaries

3. Investment Provisions: Specific investment powers, restrictions and guidelines beyond statutory powers

Suggested Schedules

1. Schedule 1 - Trust Property: Detailed inventory of initial assets transferred into the trust

2. Schedule 2 - Beneficiaries: Complete list of beneficiaries with their respective interests and entitlements

3. Schedule 3 - Trustees' Powers: Detailed enumeration of specific powers granted to trustees beyond statutory powers

4. Schedule 4 - Investment Guidelines: Specific investment parameters, restrictions and guidelines for trustees to follow

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Trustee Act 1925: Foundational legislation that defines trustees' powers and duties, establishes investment powers, and sets out procedures for appointment and retirement of trustees

Trustee Act 2000: Modern update to trust law that establishes trustees' duty of care, expands investment powers, and covers delegation authorities

Law of Property Act 1925: Governs property interests and legal estates, particularly important for how trust property is handled and managed

Perpetuities and Accumulations Act 2009: Sets modern time limits for trusts and controls accumulation of income, replacing older perpetuity rules

Trust Registration Service Regulations: Outlines requirements for trust registration with HMRC and ensures compliance with money laundering regulations

Finance Acts: Various acts governing tax implications for trusts and Inheritance Tax considerations

Mental Capacity Act 2005: Addresses issues of future incapacity and contains provisions relating to powers of attorney

Variation of Trusts Act 1958: Governs potential future variations of trusts and establishes the court's power to modify trust terms

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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