Valentine’s Day; a time to focus on love, relationships and commitment. Whilst it may not be the first thing that comes to mind at this time of year, a Declaration of Trust is an essential tool to protect finances and ensure fairness in property ownership.
For most couples, finances form an important part of a relationship; to include making decisions about finances, property and managing their assets. A Declaration of Trust is a legal document which establishes the ownership shares of property between two or more parties.
It is typically used where individuals are purchasing property jointly, but with unequal contributions to the purchase price or mortgage repayments. A Declaration of Trust ensures that their contribution is formally recognised, and most importantly, legally protected; with the ultimate intention of preventing potential disputes down the line.
Once couples have reached the point of separation and therefore needing to sell their home, they are often unable to communicate in an open and civil forum; which is why having a document in place at the outset, when couples are able to communicate amenably with one another is really important. A Declaration of Trust offers a practical way of promoting mutual openness, honesty and trust between couples.
For unmarried couples, Declarations of Trust are particularly important as there are significantly less legal protections for unmarried individuals regarding property ownership. Without a Declaration of Trust, one partner may find themselves suffering significant financial loss. A Declaration of Trust clearly documents the party’s intentions from the outset of the purchase, safeguarding individual interests and costly litigation fees.
It is also important to note that although we recommend having a Declaration of Trust in place from the point of completion, the Deed can be entered in to by two agreeable parties at any point during the period of ownership (but it will not take effect until it has been completed!).
Whilst it may not be the most romantic gift you will give your partner this Valentines period; protecting your and your partner’s interests is an essential act of love.
At Herrington Carmichael, our experienced solicitors are here to guide you through the process of creating a Declaration of Trust; offering tailored advice to suit to your specific needs and ensuring that your Declaration of Trust is legally sound, fair and in your best interests.
If you wish to discuss this further with a Solicitor please contact us, we encourage an initial meeting in which we will explain the purpose of a Declaration of Trust, understand your purchase and personal circumstances and advise on the most effective way to achieve your intentions. Please note that parties should seek their own independent legal advice and therefore we are only allowed to advise one party to the Deed due to a potential conflict of interest.
