The method used for creating the trust depends on the relationship of the settlor to the property interest that is to constitute the trust property. Declaration of Trust A trust is created by a declaration of trust when the owner of property announces that she holds it as a trustee for the benefit of another. There is no need for a transfer because the trustee already has legal title. An oral declaration is usually sufficient to transfer equitable title to personal property, but a written declaration is usually required with respect to real property. A trust is created when property is transferred in trust to a trustee for the benefit of another or even for the benefit of the settlor.
Legal title passes to the trustee, and the beneficiary receives equitable title in the property.
The settlor has no remaining interest in the property. A transfer in trust can be executed by a deed or some other arrangement during the settlor's lifetime. This is known as an inter vivos trust or living trust. A person holding a general power of appointment can create a trust according to the donor's direction by appointing a person as trustee to hold the trust property for anyone, including herself or her estate. If that person holds a special power of appointment, she can appoint only among particular persons and cannot appoint herself.