What is the difference between making a declaration of trust and transfer property on trust?

from my reading i found out that there are different formalities requirements for declaration of trust of property and different formalities requirements for transferring property ... what exactly do we mean by saying declaration of trust ? and is it any distinction or any difference from transferring property to the beneficiary?What is the difference between making a declaration of trust and transfer property on trust?
A trust is where the legal ownership of property is separated from the ';beneficial'; ownership. The beneficiaries have the ultimate benefit of the property, but in the mean-time someone else, the trustee(s), are the legal owners and manage the property in the interest of the beneficiaries. By definition trust property is never transfered to beneficiaries.





The fundamental difference is that when you declare a trust the trustee is already the legal owner, they are simply declaring that they are now holding it on trust for someone else. When the property is transferred the current owner gives it to someone else to hold as trustee for some other beneficiaries.





In either case there are usually no specific formalities, and even an oral statement that a trust now exists is sufficient. Although of course a written document is usually preferred to prove the exact terms of the trust. The exception to this is a trust of land, which needs to be evidenced in writing to be enforceable.





You may be thinking of the rules to effect a valid transfer of trust property, which are obviously not relevant to a declaration. A trust made by transfer will only be valid if the property is validly transfered. A failed transfer does not take effect as a declaration of trust.





For example, land can only be transfered in writing, shares need a validly executed share transfer form, and chattels need to be physically delivered.