Clients often wish to record the contributions that are made to the purchase price of a property or the fact that the property is held on trust for named beneficiaries. A Declaration of Trust enables persons owning property to record in detail how the net proceeds of sale should be distributed on the sale of the property and is a useful tool when property is purchased by cohabitees or members of a family where the intention is to hold the property as tenants in common.
The Declaration of Trust can be registered at H M Land Registry to record the wishes of the registered owners and protect the interests of any third parties who may have a beneficial interest in the property only.
Once made a Declaration of Trust should be reviewed regularly to ensure that it still reflects the position of the parties involved and to ensure that it covers any change in circumstances which may have occurred since the date when the property was purchased. Examples of situations which may give rise to a need to change an existing Declaration of Trust are: –
a)Marriage or civil partnership
b)Divorce or dissolution of a civil partnership
d)An increase or repayment of a mortgage or legal charge
If you would like to discuss how a Declaration of Trust might suit your circumstances contact our Land and Property department in 0207 242 7000.
Ambrose Appelbe is authorised and regulated by the Solicitors Regulation Authority with registration number 191153.