Legal Definitions - Self-declared trust

Self-declared trust

A self-declared trust is when someone who owns something declares that they now own it for someone else's benefit.

Example 1: John owns a house and declares that he now owns it for the benefit of his daughter, Sarah.

Example 2: Mary owns a car and declares that she now owns it for the benefit of her friend, Tom.

In both examples, the individuals who own the property declare that they now own it for someone else's benefit. This means that although they legally own the property, they are holding it in trust for someone else. This is known as a self-declared trust.