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Fillable Printable Declaration of Trust

Fillable Printable Declaration of Trust

Declaration of Trust

Declaration of Trust

DATED 20 .
DECLARATION OF TRUST
CONTENTS
Page
1 INTERPRETATION AND DEFINITIONS 1
2 DECLARATION 3
3 TRUST 4
4 STATUTORY POWERS OF MAINTENANCE AND ADVANCEMENT 4
5 DEFAULT TRUST 4
6 POWER OF APPOINTMENT 5
7 TRANSFER OF TRUST 5
8 EXERCISE OF TRUST POWERS 5
9 ADMINISTRATIVE PROVISIONS 5
10TRUSTEES 6
11PAYMENTS 8
12AMENDMENT OF TRUST8
13GOVERNING LAW 8
SCHEDULE 1 - SETTLOR'S DETAILS10
SCHEDULE 2 - DETAILS OF THE ADDITIONAL TRUSTEES 11
SCHEDULE 3 - DETAILS OF DEFAULT BENEFICIARIES 12
1
INTRODUCTION
(A) (1) The Settlor has applied to the Company for the Policy in termsof the application form
dated:
It is the intention that this Policy should from its inception be heldin trust for the
Beneficiaries as defined below on the terms and powers of this Declaration of Trust.
The Settlor directs that inthe Policy the Trustees should be expressed to be the
policyholder of the Company and that the Policy shall be issued to the Settlor and the
Additional Trustees named in the Second Schedule to hold the Policy in trust for the
Beneficiaries on the terms and powers in this Declaration of Trust.
OR
(2) The Settlor has a Policy with the Company which has policy number:
and a policy start date of
The Settlor now intends that the Policy shall constitute a trust for the Beneficiariesas
defined below. The Settlor hereby assigns the Policy to the Settlor and the Additional
Trustees named in the Second Schedule to hold the Policy in trust for the
Beneficiaries upon the terms and powers set out in this Declaration of Trust.
(B) The Settlor appoints the Additional Trustees to act jointly with the Settlor as Trustees ofthis
trust.
IT IS HEREBY DECLARED as follows:
1.INTERPRETATION AND DEFINITIONS
1.1In this Declaration ofTrust, unless inconsistent with the context or otherwise specified the
following expressions shall have the following meanings:
"Additional Trustees"
means the Trustees named in the Second Schedule;
"Beneficiary"
means in relation to the Settlor:
(i) any Relative
(ii) any individual who is a legatee of the Settlor's
will or would have beenif the Settlor died
intestate
(iii) any person who is nominated in writing to the
Additional Trustees as a Beneficiary by the
Settlor
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(iv) the trustee ofa trust which may provide
payments to a Beneficiary
(v) any Default Beneficiary.
This definition does not include the Settlor or the Crown;
"Benefit"
means any Benefit payable from the Policy on the death of
the Settlor;
"Civil Partner"
means, if the Settlor has died, the person who was the
Settlor's civil partner,for the purposes of section 1 of the
Civil Partnership Act 2004, immediately prior to his death;
"Company"
means the Metropolitan Police Friendly Society Limited;
"Default Beneficiary"
means any person named in the Third Schedule;
"Gifted Benefit"
means the life cover (excluding any terminal illness
benefit) provided under the Policy);
"Policy"
means the Policy detailed above;
"Relative"
means:
(i) any ancestor or descendant (however remote) of
the Settlor or of his Spouse
(ii) any child (natural or adopted), stepchild, brother
or sister of the Settlor (whether of the whole or of
the half-blood) and any descendant ofany such
child, stepchild, brother or sister
(iii) any Spouse of the Settlor or of anyperson
within (i) or (ii) above
(iv) any stepbrother or stepsister of the Settlor
(v) any individual who, in the Additional Trustees'
opinion, was financially dependent on or
financially interdependent with the Settlor at the
date of the Settlor's death or dependent on the
Settlor because of physical or mental
impairment.
and:-
a)'descendant' includes adopted persons and those
who, in the Additional Trustees' opinion, have been
treated as children of the family
b)the class ofRelatives shall be closed at the Settlor's
date of death except that itshall include persons then
en ventre sa mere who if they had then been born
would have been Relatives.
This definition may include any Trustee providedthat
person meets any of the conditions set out in (i) to (v)
above;
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"Retained Benefit"
means the terminal illness benefit or any critical illness
benefit if this has been selected under the Policy;
"Spouse"
means the Settlor’s wife or husband or Civil Partner or,
where appropriate, widow or widower or surviving Civil
Partner. A person shall only be regarded as a Spouse or
Civil Partner if details of such person and of such person’s
marriage or civil partnership to the Settlor are supplied to
the Additional Trustees and the Company at such time
and in such form as the Additional Trustees and the
Company may require;
"Trustees"
means the Settlor, the Additional Trustee and any such
other Trustees appointed in accordance with the terms of
this Declaration of Trust;
"Trust Fund"
means any Benefit payable fromthe Policy including any
accumulations of income thereon;
"Trust Period"
means the period ofeighty years less one day from the
date of this trust or the expiration of any other fixed
perpetuity period as defined by statute.
1.2Where the context does not require otherwise:-
1.2.1references to any gender shall include any other gender;
1.2.2references to the singular shall include the plural and vice versa.
1.3Reference to any enactment or regulationsshall include reference toany statutory
amendment or re-enactment for the time being in force and where appropriate any
subsequent related regulations or other legislation.
1.4Indices and headings are included for convenience only and shall not affect the interpretation
of the Trust.
1.5The Schedules form part of this Declaration ofTrust and shall have the same force and
effect as if expressly set out in the body of this Declaration of Trust, and any reference to this
Declaration of Trust shall include the Schedules, but, save to the extent otherwise set out, in
the event of a conflict between anything in thisDeclaration of Trust and anything in any
Schedule, this Declaration of Trust shall prevail.
2.DECLARATION
2.1The Settlor hereby establishes a Trust and declares that the Benefit paid fromthe Policy on
the Settlor’s death will beheld by the Additional Trustees as the Trust Fund on irrevocable
trusts as detailed in this Declaration of Trust.
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3.TRUST
3.1Retained Benefit
The Additional Trustees shall hold the Retained Benefit for the absolute benefit of the Settlor.
3.2Gifted Benefit
3.2.1The Additional Trustees shall hold the capital and income ofthe Trust Fund upon
trust for such of the Beneficiaries as the Additional Trustees may appoint during
the Trust Period.
3.2.2Until and subject to and in default of any appointment made under Clause 3.1
above or so far as any such appointment shall not extend or fail for any reason, the
Additional Trustees will hold the Trust Fund and the income thereof for the Default
Beneficiaries and if more than one than in the shares specified in the Third
Schedule.
3.2.3The Additional Trustees may accumulate the whole or part ofthe income of the
Trust Fund during the period of twenty one years from the date ofdeath of the
Settlor. Any accumulated income will then be added to the Trust Fund and dealt
with in accordance with Clause 3.1 above.
3.2.4The Settlor shall not be capable of benefitting from Gifted Benefit.
3.3The Policy shall be the only asset of the Trust Fund.
4.STATUTORY POWERS OF MAINTENANCE AND ADVANCEMENT
4.1Unless it is provided to the contrary expressly or by necessaryimplication, sections 31 and
32 of the Trustee Act 1925 will apply but with the variations in sub-paragraphs (2) and (3).
4.2Section 31 of the Trustee Act 1925 will have effect as if:
4.2.1the words “the Additional Trustees think fit” were substituted in sub-section (1)(i) for
the words “may in all the circumstances be reasonable”; and
4.2.2the proviso at the end of sub-section (1) were omitted.
4.3Section 32 of the Trustee Act 1925 will have effect as if:
4.3.1the words “advancement, maintenance, education or benefit” were substituted for
the words “advancement or benefit” wherever they appear; and
4.3.2the words “one half of” were omitted from proviso (a) to sub-section (1).
5.DEFAULT TRUST
5.1Subject to all the powers and provisions set out in this Declaration of Trust, the Trust Fund
shall be held upon trust for the Beneficiaries.
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6.POWER OF APPOINTMENT
6.1The Additional Trustees may appoint that they shall hold the Trust Fund for the benefit of any
Beneficiaries, on such terms as the Additional Trustees think fit.
6.2An appointment may create any provisions and in particular:
6.2.1discretionary trusts;
6.2.2dispositive or administrative powers
exercisable by any person including the Additional Trustees.
6.3No exercise of this power of appointment shall invalidate any prior payment ofBenefit or
application of all or part of the Trust Fund.
6.4An appointment shall be made by deed and may be revocable or irrevocable.
7.TRANSFER OF TRUST
7.1The Additional Trustees may by deed declare that this Trust Fund maybe transferred to the
trustees ofanother settlement (the "other settlement"), wherever established, to hold on the
terms of that settlement, freed and released from the terms of this Declaration of Trust.
7.2The Additional Trustees may only exercise this powerif the range of beneficiaries under the
terms of the other settlement is limited to the Beneficiaries under this Declaration of Trust.
8.EXERCISE OF TRUST POWERS
8.1The Additional Trustees may only exercise the powers in Clauses 5, 6 and 7:
8.1.1during the Trust Period; and
8.1.2if there are at least two Additional Trustees or the Additional Trustee is a corporate
Additional Trustee.
9.ADMINISTRATIVE PROVISIONS
9.1The Additional Trustees have the power to exclude any Beneficiary under this Declaration of
Trust. Once excluded that individual will cease tobe a Beneficiary or prevented from
becoming a Beneficiary either by nomination of the Settlor, under the laws of intestacy or the
Settlor’s will or as the Spouse of the Settlor. This exclusion will be carried out by deed
revocable or irrevocable. Any deed or revocation of it may only take place if there is another
Beneficiary and will not affect any previous Benefit paid.
9.2The Additional Trustees have full powers of investment and applicationof the Trust Fund
including all such powers which it could exercise if it were absolutely and beneficially entitled
to the Trust Fund. In particular and without prejudice to the generality ofthe foregoing the
Additional Trustees mayinvest or apply all or any part of the Trust Fund in any part of the
world:-
9.2.1in deferred or immediate annuity policies, life assurance policies, retirement,
endowment or sinking fund contracts or policies each of which are effected with an
insurance company;
9.2.2in any interest in land or property;
9.2.3in units, unit trusts or mutual funds or other common investment funds or
securitised issues or any other form of collective investment;
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9.2.4in the purchase of or subscription for or in underwriting, sub-underwriting or
guaranteeing the subscription ofany stocks, shares, debenture stocks, warrants or
other investments;
9.2.5in enteringinto and engaging in any obligations or contracts or dealings including
dealings in currencies, traded options, financial futures, commodities or commodity
futures;
9.2.6in choses in action and other personal chattels and anyother asset, whether
wasting or depreciating or otherwise;
9.2.7in the insurance ofany assetsof the Trust Fund against any risks and for any
amounts;
9.2.8by opening in the name of the Additional Trustees and operating accounts with any
local authority, bank, insurance company, building society or finance company
upon such terms as the Additional Trustees think fit;
9.2.9by participating in any scheme of deposit administration or any managed fund
administered by an insurance company; and
9.2.10 by participating in any investment (whether income producing or not) or in the
acquisition, and/or development of any interest in land or property jointly with any
other party or parties whether as partnersor as trustees to hold it upon trust for
sale or otherwise, even if the Additional Trustees interest in any such venture is a
minority interest;
and may
9.2.11 lend monies to, and borrow or raise monies from, any person for such purposes
and upon such security and subject to such terms as it considers fit;
9.2.12 enter into any arrangements with an insurance company to reinsure the whole or
any portion of the risks undertaken, and in particular including reinsuring against
any excess of claims that might fall upon the Trust owing to a catastrophe or
epidemic;
9.2.13 make any other arrangements with an insurance company for the provision of all or
any Benefits.
9.3Any provision made under the power to insure in respect of any Benefit (whether immediate
or contingent) may be made by effecting anindividual annuity contract or policy in thename
of the Beneficiary or in the name of the Additional Trustees or (if the contract or policy was
initially effected in the name of the Additional Trustees) by assigning it to the Beneficiary.
10.TRUSTEES
10.1Appointment and Removal of Trustees
10.1.1 The Settlor may at any time by deed remove a person appointed as an Additional
Trustee from that role and appoint oneor more persons to bereplacement or
additional Trustee. After the death of the Settlor the power of appointment and
removal vests with the Additional Trustees and shall be exercisable by majority
decision.
10.1.2 There shall be no maximum number of Additional Trustees.
10.1.3 A corporate body may act as an Additional Trustee and as sole Additional Trustee
whether or not it is a trust corporation or has been preceded in office by more than
one Additional Trustee.
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10.1.4 A corporate Additional Trustee or anAdditional Trustee who is a solicitor or an
accountant or engaged in any profession or business shall be entitled to such
remuneration as may be agreed with the Settloror, after the death of the Settlor,
with the other Additional Trustees.
10.1.5 Where a corporate body acts as an Additional Trustee its function is to be
exercisable either by its board of directors or by any one or more of its duly
authorised officers.
10.1.6 An Additional Trustee may resign fromoffice by giving not lessthan one month's
written notice to any other Additional Trustees. The Additional Trustee's resignation
shall take effect on the date specified in the notice but not before any other
Additional Trustees receive the notice. The Additional Trustees shall execute such
documents and do such things asmay be necessary to give proper effect to such
resignation or removal.
10.1.7 Any appointment of new or AdditionalTrustees or removal of a Trustee or
resignation of a Trustee must be in writing. The Company shall not be bound by
any change,addition, appointment or resignation of a Trusteeuntil notice of such
change, addition, appointment or resignation is received at the Company's Head
Office.
10.2Trustee Proceedings
10.2.1 The Additional Trustees may act by majority vote at a quorate meeting and (subject
to any subsequent decision) any resolution so passed will bind any dissentient or
absent Additional Trustees. Except where there is a sole corporate Additional
Trustee (and subject to any Additional Trustees' resolution to the contrary) two
Additional Trustees constitute a quorum.
10.2.2 The continuing Additional Trustees may continue to act notwithstanding any
vacancy in their number.
10.2.3 The Additional Trustees may act by written resolution signed by a majority ofthe
Additional Trustees and for this purpose each Trustee may sign a separate
identical document which will be as valid as if they had all signed the same
document.
10.3Protection of Additional Trustees
10.3.1 The duty of care under section 1 of the Trustee Act 2000 shall not apply to any
Additional Trustee.
10.3.2 No Additional Trustee (or any officer or representative of an Additional Trustee or
any delegate or nominee of the Trustee) will be liable for any breach of trust except
to the extent attributable to his act or omission knowingly and wilfully committed in
bad faith or in the case of a professional Additional Trustee, negligently.
10.3.3 Any Additional Trustee (or any officer or representative of an Additional Trustee or
any delegate or nominee of the Trustee) may be a Beneficiary (and may retain any
benefit).
10.3.4 No Additional Trustee's decision will be invalidated or questioned because any of
the Trustees (or any officer or representativeof anAdditional Trustee or any
delegate or nominee ofthe Additional Trustee) had any interest (or was an officer
or trustee of, or otherwise connected with, any third party interested) in it.
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11.PAYMENTS
11.1Payment from the Policy to the Additional Trustees will be a full discharge of any liability
under the Policy in respect of that payment. Where Benefits are payable to the Additional
Trustees it is the responsibility of the Additional Trustees to pass this on to the Beneficiaries
and not the responsibility of the Company or any other party.
11.2Any payment to a Beneficiary shall be paid by banktransfer or otherwise as theAdditional
Trustees may agree with the recipient.
11.3If a Beneficiary is a minor, or in the Additional Trustees' opinion, is unable to act by reason of
mental disorder or otherwise, the Additional Trustees may pay or direct the payment to any
one or more ofhis parents, guardians, Spouse or Civil Partner or other person legally
appointed or authorised to receive it on his behalf to be applied for his benefit.
12.AMENDMENT OF TRUST
The Additional Trustees may at any time during the Trust Period amend, extend or modify
any of the provisions of this Deed. Any amendment, extension or modification must be made
by deed. This power cannot be exercised ifit would permit the Settlor to benefit directly or
indirectly from the Trust Fund.
13.GOVERNING LAW
The Trust shall be construed according to, and be governed by, the laws of Englandand the
parties hereto irrevocably submit to the non-exclusive jurisdiction of the English courts for the
purposes of this Declaration of Trust.
IN WITNESS WHEREOF the parties have executed this DEED on [ ]
SIGNED as a DEED by the Settlor:
in the presence of (Signature of Witness):
Witness's Occupation:
Print Name and Address of Witness:
Postcode:
9
SIGNED as a DEED by the First Trustee:
in the presence of (Signature of Witness):
Witness's Occupation:
Print Name and Address of Witness:
Postcode:
SIGNED as a DEED by the Second Trustee:
in the presence of (Signature of Witness):
Witness's Occupation:
Print Name and Address of Witness:
Postcode:
SIGNED as a DEED by the Third Trustee:
in the presence of (Signature of Witness):
Witness's Occupation:
Print Name and Address of Witness:
Postcode:
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