A Declaration of Trust is essential in situations where there is a need to formally establish and document arrangements where assets are held by one party (trustee) for the benefit of others (beneficiaries) under Indonesian law. This document is particularly relevant in estate planning, family wealth management, and property holding arrangements. The Declaration of Trust must be executed before an Indonesian notary and typically includes detailed provisions about the trust property, trustee powers, beneficiary rights, and distribution mechanisms. While Indonesia's civil law system doesn't recognize trusts in the same way as common law jurisdictions, this document creates similar legal relationships through careful structuring within the Indonesian legal framework. It's commonly used for family wealth planning, property management, and business arrangements where asset protection and structured management are required.
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1. Parties: Identifies the Settlor (creator of trust), Trustee(s), and named Beneficiaries
2. Background: Explains the context and purpose of creating the trust
3. Definitions: Defines key terms used throughout the document
4. Declaration of Trust: Formal statement declaring the trust arrangement and confirming the transfer of assets to the trustee
5. Trust Property: Detailed description of the assets being placed in trust
6. Trustee Powers and Duties: Comprehensive list of trustee's powers and responsibilities in managing the trust
7. Beneficiary Rights: Specifies the rights and entitlements of the beneficiaries
8. Trust Duration: Specifies the term of the trust and conditions for termination
9. Distribution Provisions: Details how and when trust assets will be distributed to beneficiaries
10. Administrative Provisions: Covers operational aspects including record-keeping, accounting, and reporting requirements
11. Governing Law: Confirms Indonesian law as governing law and relevant jurisdictional matters
12. Execution: Formal execution block meeting Indonesian notarial requirements
1. Trustee Remuneration: Include when trustees are to be compensated for their services
2. Successor Trustees: Include when providing for replacement trustees
3. Investment Powers: Include when trustees need specific investment authority beyond standard powers
4. Tax Provisions: Include when specific tax planning arrangements are required
5. Dispute Resolution: Include when specific dispute resolution procedures are desired
6. Protection Provisions: Include when additional trustee liability protection is needed
7. Amendment Powers: Include when the settlor wants to retain power to modify trust terms
1. Schedule A - Trust Property: Detailed inventory and description of all assets placed in trust
2. Schedule B - Beneficiary Details: Complete information about beneficiaries and their respective entitlements
3. Schedule C - Initial Trustees: Details of initial trustees and their contact information
4. Schedule D - Distribution Schedule: Specific timeline or conditions for asset distribution if applicable
5. Appendix 1 - Asset Documentation: Copies of relevant property titles, certificates, or other asset documentation
6. Appendix 2 - Trustee Acceptance: Formal acceptance of appointment by trustees
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Compliance
Risk Management
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