What is a Declaration of Trust?
A Declaration of Trust is a legal document that establishes the ownership arrangement and beneficial interests in a property.
It is usually made when individuals decide to buy a property together. Its main purpose is to remove any uncertainty about each person’s financial interest and what will happen to their money should the property be sold in the future.
Who Should Get a Declaration of Trust?
A Declaration of Trust is particularly important in the following situations:
- Cohabiting couples – It ensures each party’s financial contributions are acknowledged and protected, helping to avoid disputes if the couple separates and the property is sold.
- Friends or family buying together – When friends, siblings, or family members invest in property jointly, a clear agreement helps prevent future disagreements over ownership and contributions.
- Unequal contributions – If one party contributes significantly more toward the purchase price or ongoing mortgage, a Declaration of Trust clarifies the ownership shares accordingly.
Benefits of Having a Declaration of Trust
- Provides all parties with a clear understanding of their rights and responsibilities, reducing the risk of future disputes.
- Documents financial contributions, protecting each party in cases of relationship breakdown or financial disagreements.
- Sets out clear instructions for selling the property or transferring ownership, reducing stress and conflict.
- Can be updated or modified to reflect changes such as refinancing or adjusted ownership shares.
How Can a Declaration of Trust Be Set Up?
It is advisable to instruct a solicitor specialising in this area. They will guide you through the process to ensure the document is tailored to your needs and drafted correctly.
At Franklins, the cost for preparing a Declaration of Trust starts at £450 plus VAT. The process begins with an appointment to discuss ownership details and financial contributions. The solicitor will also explain any risks or considerations. After this meeting, the Declaration of Trust will be prepared to reflect the agreed terms.
For further advice and assistance, please contact our Wills, Trusts and Probate team on 01604 828282 / 01908 660966 or email [email protected].
Written by Danijela Milivojevic
Trainee Solicitor, Dispute Resolution at Franklins Solicitors LLP
Specialises in private client, employment, and litigation matters, with additional experience in commercial and residential property. Currently completing her final seat in litigation as part of her solicitor training.
Danijela Milivojevic is a Trainee Solicitor at Franklins Solicitors LLP. She joined the firm in 2022 as a Paralegal after completing her Law degree at Nottingham Trent University and the Legal Practice Course at the University of Law in Birmingham.
Danijela has completed seats in Private Client and Employment, and is currently undertaking her final seat in Litigation. She also has experience in both commercial and residential property.
Outside of work, Danijela enjoys CrossFit, going to the gym, and spending time with family and friends.
