A Declaration of Trust reflects the ownership of a property and the proportions contributed by each party.
The aim of this document is to protect the beneficial interests of all parties who have contributed to the purchase of a property whether or not they are named on the legal title, for example, if you are a parent who will be contributing to the balance of the deposit for your child’s first home.
A Declaration of Trust is particularly useful when making unequal contributions to a property and will show how the sale proceeds are to be divided between the parties when the property is sold.
A Declaration of Trust should ideally be drafted before completion of the property takes place so it is ready to be signed on this date. However, it is possible to make a Declaration of Trust at any time after the purchase of a property.
Whilst the Declaration of Trust makes clear the shares which each party owns in a property, it is important to make a Will to ensure your share of the property passes to your chosen beneficiaries.