Difference Between Trust Deed & Trust Declaration

Trusts, Generally

• The term trust refers to a three-person legal relationship involving the trustor, 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 summarizes 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.
  
  

Identification

• 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.