A Declaration of Trust is a legal document which records the financial arrangements between anyone who has a financial interest in the property. This is often a necessary step when purchasing a property, especially if individuals are securing financial contributions from others, such as a parent.
This legal document sets out the individual contributions being made towards the purchase of a property. Often, it is not as straightforward as splitting a property 50/50. The aim of signing a document at the outset of the transaction, is that this will remove any uncertainty and the possibility of disagreements later down the line.
Further, a Declaration of Trust (or Deed of Trust) would clearly outline how much money each contributor is to be repaid and will ensure the beneficial interest of each party is recorded. In the event of a dispute and sale of the property, the Declaration will reflect how the sale proceeds are to be split between the parties.
A Declaration of Trust ultimately provides protection to all parties who have a beneficial interest in the property, so a document like this needs to be drafted correctly. It is vital to record the wishes of each party in the Declaration and cover eventualities such as there being a dispute, or one party losing capacity or predeceasing another. Therefore, a Will should be secured to set out what happens to the respective share of each party
Drafting a Declaration of Trust is a good way to express the parties’ intentions before they purchase a property.
Our experienced solicitors in the Private Client department can help you to secure your Will or Declaration of Trust. This work is carried out on a fixed fee basis. Get in touch with us with your enquiries and we will be happy to assist you.
