Difference between trust deed & trust declaration

Written by phil m. fowler | 13/05/2017

A trust deed is the modern equivalent of the mortgage loan. A trust declaration is a document that summarises the terms and proves the existence of a trust.

Trusts, Generally

The term trust refers to a three-person legal relationship involving the truster, who creates the trust, the trustee, who manages the trust, and the beneficiary, who receives trust income and property.

Trust Deeds

Trust deeds are specific categories of trusts, and they serve a different purpose than other trusts. Trust deeds are used to secure loans on homes and real estate.

Trust Deed Purpose

A trust deed is, for all practical purposes, the equivalent of a mortgage. Basically, a trust deed gives the mortgage lender (e.g., the bank or credit union) the right to foreclose on your property if you don't repay the loan.

Trust Declarations

A trust declaration is typically a one-page document that summarises the important provisions of a trust. A trust declaration is used to prove that a trust exists without the need for providing a full copy of the trust document. This is especially helpful since most people want to keep the terms of their trust private.


A trust deed is always tied to a certain piece of real estate, which is referred to as the collateral or the secured property. A trust declaration, on the other hand, is always tied to a formal trust, like a family trust or personal living trust.

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