Trust

Property lawyers at Pindoria Solicitors are very experienced in a breadth of property matters, including drafting and executing declarations of trust. A property declarations of trust are of increasing importance in modern society where prices of property are continually increasing and so it can be difficult for two or more individuals buying property together to make equal contributions. With the tool of declaration of trust there is still the ability for the property to be held equally despite unequal contributions in the purchase price. Declaration of trust property is particularly useful in planning for the future, should the relationship between the individuals breakdown or in the event of death. Declarations of trust provide clarity about how proceeds of a property are to be split if the above is to occur.

The Declaration of Trust will deal with:

  • Unequal contributions in the purchase price
  • Contributions from parents or other members of family
  • Mortgage payments
  • Option to Purchase

The Declaration of Trust should protect third party interests in the proceeds of sale of the property by the registration of a restriction at the Land Registry.

A declaration of trust property needs to be protected and should be in the safe hands of efficient professionals. Please contact our lawyers for more details about Declarations of Trust and a fixed fee quote.

FAQ

  1. What is a declaration of Trust?

    A Declaration of Trust is a legal document that determines the exact portion of the property that each stakeholder is entitled to. And what course of action to take if the property is sold.

    It is essential to have a legally binding Declaration of Trust property document as it helps establish clear responsibility for mortgage payments, home improvement costs, insurance, and other bills.

    Additionally, a Declaration of Trust also determines the future course of action on various eventualities – if one or all the owners decide to sell the property, or if one of the owners wishes to buy the property stake of others.

    A declaration of Trust for property is crucial since it protects the rights and interests of all the parties involved in the property.

  2. Can I write my own declaration of Trust?

    Here’s the deal.

    A simple search through the internet will throw up many pre-prepared templates for Declaration of Trust that you might use to prepare one for yourself. However, it is generally not advisable to write your copy without involving a Declaration of Trust solicitor.

    The reason you should involve Wills and Trusts solicitors is to make sure you include complete details about the arrangement between all the parties involved in the property. If you use a standard template, you might run the risk of missing out on unique and case-specific details from the case in question.

  3. Is a declaration of Trust legally binding?

    If the document is prepared properly, then it is a legally binding document. For the Declarations of Trust document to be legally binding, it should meet several criteria.

    1. The document must be drawn up as a deed
    2. Must be drawn up after the willing consent of all the parties involved
    3. All the parties should have a full understanding of the document details
    4. All concerned parties must duly sign it, and the signing must be witnessed and attested.

  4. How much does a declaration of trust cost?

    An average Declaration of Trust cost considers the complexity of the case, the number of consultations required to draw up the document, the total number of clauses it involves, the location and experience of the firm.

    You might think that paying trust solicitor fees to draft the declaration statement is an unnecessary cost. We can assure you that it can save you lots of money in property disputes and misunderstandings in the future.

  5. Can a declaration of Trust be challenged?

    First, Declarations of Trust are documents to show how all the parties involved accept the terms of the property split. However, the deed can be re-written if the situation changes, but with the consent of all the parties.

    Next, if the changes are minor, you can get a deed of variation. In case of significant changes, it’s better to draft a new document. Once a new Declaration of Trust is filed, it would automatically replace any information provided in the original document.

    You can instruct a trust solicitor to get a new one written if,

    1. There are any substantial home improvements made to your property
    2. Its value has subsequently improved.
    3. Latest changes in beneficiaries

  6. Can a declaration of Trust be overturned?

    Declarations of Trust can be changed or amended only if all the parties concerned agree or consent to adding additional clauses or re-writing the document. The declaration document is designed in such a way that it is unambiguous and complete. A trust solicitor is the right person to draft a comprehensive Declaration of a Trust legally binding on all parties.

    The only way the court can overturn a Declaration of Trust is when misrepresentation or fraud can be accurately proved. You can seek out reliable trust solicitors to get more information about drafting or overturning a trust document.

  7. What happens to a Declaration of Trust on death?

    Declarations of Trust is a legal document that is considered as a part of estate administration in case of the death of the property co-owner. The share of the deceased will be given to the beneficiary named in the deceased’s will. If a will doesn’t exist, then intestacy rules will naturally apply.

    A point to note here is that the property share of the deceased will NOT automatically pass on to the other co-owners. The share mentioned in the Declaration of Trust on death of a co-owner will be transferred to other owners only if it is stated explicitly in the deceased’s will.

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