Declaration of Trust
A declaration of trust, often referred to as a deed of trust, is a crucial legal document that precisely outlines financial agreements among co-owners of a property. Its purpose is to provide a comprehensive record of each individual’s initial contributions to the property, ongoing financial responsibilities, and contingency plans in case of property sale or buyout scenarios.
When Should You Consider a Declaration of Trust?
A declaration of trust can play an essential role in various circumstances, including:
- Unmarried Cohabitation: If you and your partner are purchasing property together but aren’t married, a declaration of trust can safeguard your interests.
- Joint Ownership with a Friend or Business Partner: Buying property with a friend or business associate? A declaration of trust can delineate each party’s responsibilities and rights.
- Funds from Friends or Relatives: When the funds for your property purchase come from friends or relatives, a declaration of trust becomes indispensable in recording their contributions.
- Unequal contributions: A declaration of trust can define each tenant’s share and responsibilities especially when parties have unequal contributions.
- Death of a co-owner: When one co-owner dies, it is essential to be able to determine the percentage ownership of a property belonging to the deceased to be administered by their Executors or Administrators.
What is Joint Tenancy?
A joint tenancy is a legal arrangement where two or more individuals jointly own a property. In the event of one owner’s death, their share automatically passes to the surviving owner(s). It’s a common choice for spouses or partners.
What is Tenancy in Common?
Tenancy in common is a form of property ownership where each owner has a specific share of the property. Unlike joint tenancy, there is no right of survivorship. If one owner passes away, their share can be inherited by a beneficiary of their choice.
Key Elements of a Declaration of Trust
A Declaration of Trust can clarify ownership rights, responsibilities, and each co-owner’s share in the property. It can also provide protection in case of disputes and offer a clear roadmap for property distribution in the future.
This legally binding document includes essential components such as:
- Initial Contributions: Clearly specifies how much each party contributed to the property’s deposit, including contributions from non-residents.
- Mortgage Payments: Outlines how much each party should contribute to mortgage payments.
- Property Sale Shares: Addresses the division of property shares in the event of a sale.
A Declaration of Trust can also include clauses to cover providing an option to purchase to the other co-owners if one party wishes to sell their share.
If you require professional assistance with creating a Declaration of Trust tailored to your specific needs, our team of expert solicitors is here to guide you through the process.
Marriage or Civil Partnership Impact
When cohabiting couples decide to marry or enter a civil partnership, a couple’s Declaration of Trust will be superseded by the Matrimonial Causes Act 1973. However, suppose the couple faces a divorce or civil partnership dissolution and cannot amicably agree on financial settlement terms. In that case, the court may consider the provisions outlined in the Declaration of Trust as part of the overall property and asset distribution assessment.
Contact Us for Declaration of Trust Services in Northampton
At Tollers, we understand that legal matters involving joint property ownership can be complex, and we offer a dedicated team of experts to assist you with your Declaration of Trust needs in Northampton.
Why Choose Tollers for Your Declaration of Trust?
- Experienced Solicitors: Our highly experienced Northampton solicitors are well-versed in the intricacies of Declaration of Trust services.
- Impartial Professionals: We offer the option to appoint an impartial professional, ensuring a conflict-free approach to managing your affairs.
While it is not a strict requirement to use a solicitor when setting up a declaration of trust, professional legal advice is highly recommended to ensure that your Declaration of Trust accurately reflects your intentions and is legally sound. Our highly experienced Northampton solicitors are well-versed in the intricacies of Declaration of Trust services. We offer the option to appoint an impartial professional, ensuring a conflict-free approach to managing your affairs.
Your Peace of Mind is Our Priority
Don’t leave your financial future to chance. Take control today with a Declaration of Trust tailored to your unique circumstances. Our Northampton team is committed to supporting you every step of the way.
Ready to Take the Next Step?
Please complete the form below to learn more about our Declaration of Trust Services or to schedule an appointment with a member of our Trusts and Estates Team. Your peace of mind is just a click away.