Declaration Of Trust
Protect your financial investment with a declaration of trust.
A Declaration of Trust (also referred to as a Deed of Trust or Trust Deed) is used to remove any uncertainty as to what will happen to each person's financial investment in the property. They are often considered by unmarried couples or where multiple people purchase or have an interest in a property. They may or may not be family members.
Setting out the financial arrangements at the outset provides clarity, hopefully reducing any disagreements in the future.
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This said, there is nothing to prevent a Declaration of Trust being entered into at a later date. For example, if someone moves into a property already owned by someone else or you the homeowner has a mortgage then only the homeowner’s name will be recorded on the deeds. If the person moving in is to contribute financially to the property, whether as to the mortgage payments, bills, improvements to the property or otherwise they may acquire a beneficial interest in the property. A Declaration of Trust will set out what each person is entitled to and what should happen if the property is sold.
Each Declaration of Trust is different, and solicitors tailor the Deed to reflect the fact that no two financial arrangements are ever exactly the same. Here at Mullis & Peake LLP we take time to fully understand the nature of the transaction and the intention of the parties to ensure that the Declaration of Trust accurately reflects the requirements of our clients.
Should cohabiting couples marry then the Declaration of Trust will be superseded by the Matrimonial Causes Act 1973. However, in the event of a divorce, if the parties cannot agree terms of the financial settlement amicably then a Court may well consider the terms of the Declaration of Trust.
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Residential Property Team
Paul qualified as a solicitor in 2010 and specialises in Residential Property matters.