This document is a declaration of trust which can be used by a partnership for the purpose of life insurance for the partners.
A declaration of trust is a binding legal document (also referred to as a trust deed) which expresses the intention of the trustees to hold property on trust for the parties in the policy. In this case, the trustees hold a group life insurance policy and its benefits on trust for the partners.
Purpose of this precedent
This precedent can be used when the partners intend that the proceeds of a group life insurance policy will be paid to a trustee (or trustees) to manage, dispose of and distribute on behalf of the partnership.
- who benefits from the trust; and
- the powers and remuneration of the trustees who will hold on trust, and manage, the proceeds of any benefit flowing from the policy.
This type of document helps to avoid misunderstandings or disputes about the obligations of the trustees and the partners if a claim is made on the policy. For example, if a partner dies. This document can be customised to suit the terms of the partnership’s insurance policy and the partnership.
This document has been authored for Lexis Nexis by Michael Heraghty, Partner, TressCox Lawyers, Rosemarie Ryan, Barrister and Jacqui L Walker, Principal Lawyer, J L Walker Law.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.