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Professor Brett Davies explains the concept of a declaration of trust, which allows individuals to purchase an asset anonymously. This document is particularly useful when someone wants to buy something, like a car, without revealing their identity to the seller. For instance, if you wish to buy a 1986 Corvette Stingray but prefer not to do it yourself, you can send a trusted person, like your friend Robert, as the trustee to make the purchase. This way, the asset is bought anonymously, preventing the seller from knowing who the actual buyer is and ensuring that the buyer maintains control without the trustee gaining ownership of the asset.