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Simple English definitions for legal terms
Self-declared trust
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A quick definition of Self-declared trust:
A self-declared trust is when someone says that they own something, but they are really holding it for someone else. It's like if you were holding a toy for your friend and you said, "This toy is mine, but I'm keeping it safe for my friend." The person who owns the toy is your friend, but you are taking care of it for them. In the same way, someone can say they own something, but really they are taking care of it for someone else.
A more thorough explanation:
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.