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Professor Brett Davies explains the concept of a declaration of trust, which allows individuals to secretly purchase an asset without the seller knowing their identity. This method can be useful for private purchases, such as a desired vehicle (e.g., a 1986 Corvette Stingray) when the buyer prefers not to be directly involved. By appointing a trustee (like a friend) to handle the purchase, the actual buyer maintains anonymity while ensuring they retain control over the asset. The video highlights the discretion afforded by this legal arrangement and its practical applications in private transactions.