Trust Operating Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Trust Operating Agreement

"I need a Trust Operating Agreement for a UAE-based family office operating in DIFC, with specific provisions for Islamic finance compliance and multi-generational wealth management, to be effective from March 2025."

Document background
A Trust Operating Agreement is essential for establishing the operational framework and governance structure for trust administration in the UAE, particularly within the DIFC and ADGM financial free zones. This document is typically required when setting up professional trust services or when appointing a trust operator to manage trust assets and operations. It details the comprehensive operational procedures, regulatory compliance requirements, risk management protocols, and reporting obligations specific to UAE trust structures. The agreement ensures alignment with UAE trust laws, including DIFC Trust Law No. 4 of 2018 or ADGM Trust Regulations 2016, and addresses key aspects such as AML/CFT compliance, Islamic finance considerations (where applicable), and local regulatory requirements.
Suggested Sections

1. Parties: Identification of all parties including the trustee, trust manager, and any other key operational parties

2. Background: Context of the trust operation and purpose of the agreement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules

4. Appointment and Authority: Formal appointment of the trust operator and scope of authority

5. Duties and Responsibilities: Core responsibilities of the trust operator including administrative, financial, and fiduciary duties

6. Operational Procedures: Standard operating procedures for trust administration and management

7. Compliance Requirements: Regulatory compliance obligations including AML/CFT requirements

8. Reporting and Records: Requirements for financial reporting, record-keeping, and communications

9. Fees and Expenses: Fee structure, payment terms, and allowable expenses

10. Risk Management: Risk management framework and control measures

11. Confidentiality: Confidentiality obligations and information handling requirements

12. Term and Termination: Duration of the agreement and termination provisions

13. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

Optional Sections

1. Investment Management: Required when the trust operator has investment management responsibilities

2. Delegation of Duties: Include when certain duties may be delegated to third parties

3. Special Purpose Vehicle Management: Needed when the trust involves management of SPVs

4. Multi-jurisdiction Operations: Required for trusts operating across multiple jurisdictions

5. Islamic Finance Compliance: Include for Shariah-compliant trust operations

6. Co-trustee Provisions: Required when multiple trustees are involved

7. Insurance Requirements: Detailed insurance obligations for high-value or complex trusts

8. Force Majeure: Specific provisions for handling unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Operating Procedures Manual: Detailed operational procedures and workflows

3. Schedule 3 - Reporting Templates: Standard forms and templates for regular reporting

4. Schedule 4 - Compliance Checklist: Regulatory compliance requirements and checklist

5. Schedule 5 - Key Personnel: List of key personnel and their roles/responsibilities

6. Schedule 6 - Service Level Agreement: Detailed service levels and performance metrics

7. Appendix A - Power of Attorney: Standard form of power of attorney if required

8. Appendix B - Account Opening Forms: Standard forms for opening trust accounts

9. Appendix C - AML/KYC Requirements: Detailed AML/KYC procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Financial Services

Wealth Management

Private Banking

Family Office Services

Corporate Services

Asset Management

Investment Services

Trust Services

Private Equity

Real Estate Investment

Islamic Finance

Relevant Teams

Legal

Compliance

Risk Management

Trust Administration

Operations

Finance

Investment Management

Client Relations

Company Secretarial

Due Diligence

Relevant Roles

Trust Manager

Compliance Officer

Legal Counsel

Risk Manager

Trust Administrator

Operations Director

Chief Operating Officer

Investment Manager

Relationship Manager

Company Secretary

Head of Trust Services

Financial Controller

Due Diligence Officer

Trust Account Manager

Managing Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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