There are three ways in which a settlor/donor (S) may, during his lifetime, confer the benefit of his property on another, the beneficiary/donee (B). These have been mentioned in Chapter 4 above but are also mentioned below. (Note: that for gifts and trusts taking effect on death, the testator must comply with Wills Act 1837, s 9.)

1. S may make an absolute gift to B; if made effectually, legal title will vest in the donee, who will also enjoy the property beneficially;
2. S may transfer the property to trustees to hold on trust for B; S parts with legal title to the property and the beneficial interest; this method may, for convenience, be called settlement by transfer;
3. S may retain legal title in the property but declare that henceforth they hold it on trust for B; S has ceased to be the beneficial owner of the property, but remains the legal owner; this method is frequently called a declaration of trust, shorthand for the settlor declaring themself a trustee, but the declaration of trust requirements of Law of Property Act, s 53(1)(b) apply to settlements by transfer under 2 as well as 3.