Advice Centre

Own It Right: The Power of A Declaration of Trust

Posted by: Rezwana Dithy
Posted in: Wills and probate
Date published: 01/10/2024

Speak to a member of our specialist international team of UK International Probate lawyers today on 0330 107 0107.

What is a Declaration of Trust

A Declaration of Trust, sometimes called a Deed of Trust, is a formal legal document used to outline the ownership and financial arrangements regarding a property. It is particularly useful when multiple parties are involved in the purchase or contribution towards the asset, as it ensures that everyone’s interests are clearly defined and legally protected.

This document is commonly used when buying property with someone else, whether that’s a partner, friend, or family member. It’s also frequently created when one or more people are contributing financially towards a property without being listed as legal owners. The Declaration of Trust ensures that all parties involved have their financial contributions acknowledged and their rights safeguarded.

Key Reasons to Have a Declaration of Trust

A Declaration of Trust can be beneficial in variety of situations. The main purposes of this legal document are to:

• Clearly define each party’s financial interest in the property or asset.

• Outline responsibilities for ongoing costs, such as mortgage payments or maintenance expenses.

• Provide a framework for what happens if the property is sold or if one party wishes to sell their share.

• Protect the financial interests of someone contributing to the property who is not officially named as an owner.

By laying out these details in advance, a Declaration of Trust may prevent misunderstandings, disputes, or potential legal issues down the line.

When You Should Consider a Declaration of Trust

If you are in any of the following situations, a Declaration of Trust might be essential for you:

• Unequal Contributions: If you and your co-owners are contributing different amounts to the purchase price of a property, the Declaration will specify exactly what percentage of the property each person owns.

• Joint Mortgages with Unequal Payments: Even if you’re taking out a joint mortgage, the document can specify how much each party is responsible for in terms of monthly payments.

How IMD Solicitors Can Help

At IMD Solicitors, we understand that purchasing property is a significant financial investment, and ensuring your interests are safeguarded is essential. If you’re considering buying a property with others/ have already bought a property with other people, or if someone is helping you financially, a Declaration of Trust could be crucial in protecting your investment and avoiding potential conflicts in the future.

The cost of drafting a Declaration of Trust will depend on the complexity of your individual situation, such as the number of parties involved, the structure of financial contributions, and any specific clauses you may wish to include. Our fees for a standard declaration of trust starts from £695 plus VAT and disbursements.

Rezwana Dithy, our Private Client Solicitor, can provide you with tailored legal advice, ensuring that your Declaration of Trust fully reflects your individual circumstances and protects your rights. Contact us on 0330 107 0107 to discuss how we can assist you in drafting a comprehensive Declaration of Trust, and to obtain a tailored quote.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

To find out more about our services, visit International Probate section of our website.

Call us now to discuss your case 0330 107 0107 or email us at info@imd.co.uk.