Is a declaration of a Trust the same as a Trust?

Any time somebody holds assets on behalf of other people, a Trust arrangement is created. There are various different types of Trust, which can be constructed either formally (i.e. in writing, signed as a Deed) or informally (which is not formally recorded but often results in litigation).

A declaration of a Trust is a type of ‘bare trust’ – an expressly created Trust executed via a Deed, which directs an absolute beneficial interest to someone who is not the named legal owner. There are other, much more complex Trust arrangements – such as discretionary Trusts and life interest Trusts.