What is a Declaration of Trust?

A Declaration of Trust is a legal document that records how a property is owned and sets out how any proceeds from a sale should be divided. It provides clarity about each person’s interest in the property and can help prevent uncertainty or disputes in the future.

Why use a Declaration of Trust?

A Declaration of Trust can be particularly useful where:

• property ownership is not equal
• people have made different financial contributions
• there is a need to formally record an agreement about ownership

It allows the intentions of everyone involved to be clearly documented, helping to provide certainty and reassurance.

When is a Declaration of Trust commonly used?

A Declaration of Trust is often considered in situations such as:

• one person contributing more towards the deposit for a property purchase
• family members providing financial assistance
• jointly owned property where the owners have different shares
• couples or relatives wanting to formalise their ownership arrangements

What does it cover?

A Declaration of Trust can set out important details, including:

• the percentage share each person owns
• how sale proceeds should be divided
• how mortgage payments, maintenance costs and other expenses are handled
• what should happen if circumstances change

Every Declaration of Trust is tailored to reflect the specific intentions and circumstances of those involved.

Why is a Declaration of Trust important?

Without a Declaration of Trust, ownership arrangements may not always be clear. If disagreements arise, it can become more difficult to prove what each person intended when the property was purchased.

Having a clear written agreement can help provide certainty and reduce the risk of future disputes.

How does a Declaration of Trust relate to wills and estate planning?

The way a property is owned can have an impact on what happens after someone dies and how their share of the property passes.

For this reason, a Declaration of Trust is often an important part of wider estate planning. Reviewing your property ownership alongside your Will can help ensure your wishes are properly considered and your loved ones are protected.

When should you consider one?

You may wish to consider a Declaration of Trust if:

• you own property with someone else
• your financial contributions are not equal
• family members are involved in the purchase or ownership of a property
• you want greater clarity and protection around your property interests

How Attwells Solicitors can help

At Attwells Solicitors, we can help you prepare a Declaration of Trust that accurately reflects your intentions and fits alongside your wider legal planning.

Our experienced team can provide guidance on your property ownership arrangements and help you understand the options available to you.

If you would like clarity about how your property is owned, contact Attwells Solicitors today and our team will be happy to help.