When you need a declaration of trust
A declaration of trust is made wherever two or more people own property together. The declaration will say who looks after the property (the trustees) for the people ultimately entitled to the property (the beneficiaries).
The declaration of trust will say on what terms the beneficiaries receive their share in the property, for example: percentage share owned, deposits that must be paid back and what happens to the income.
Ideas for what your declaration of trust could do
The simplest declaration of trust of all. Appropriate if you have and intend to share all of the costs for buying and maintaining the property equally.
Statement in a transfer document
A one page sheet recording your shares, how outgoings will be allocated between you and state whether the wish of one party to sell should prevail. Appropriate if you intend to share all of the costs for buying and maintaining the property equally or in simple percentage shares.
Short
A more complex declaration of trust recording each owner's contributions, agreeing share of the outgoings and dealing with a few contingencies that may arise. For example who may occupy the property or when one owner can require the property to be sold.
Detailed
To deal with many possible contingencies. Appropriate if funding for the property came from a third party, you intend to start a major building project or you want to use "floating shares" that change according to contributions made over time.
Sophisticated
Providing someone with a place to live, income from a rental property or other investments and/or allowing your chosen trustees to apply capital to or for the benefit of that person, for as long as they need it.
For potentially vulnerable person
You may already have an idea of what you want your declaration of trust to include. When you instruct our solicitors to help you you will receive advice tailored to your situation that will include the best way to achieve your aims as well as commentary on other aspects you may not have thought of.
Registrable charge, an alternative
If you plan to lend a fixed sum that you’d like back in a while, with or without interest, when the property is sold or on another fixed date; but aren’t looking to secure a percentage share or set rules for occupation, it may be more appropriate to secure the funds using a loan agreement rather than a declaration of trust.
A loan agreement may be registered against the title to the property at Land Registry. A loan agreement has the added benefit that it is not considered an interest in a property under a trust, so both the lender and the borrower’s stamp duty land tax (SDLT) position will be unaffected.
How it works
Process
Once you have made contact with us, spoken with your solicitor and decided to go ahead we will send you our welcome pack of paperwork to complete and return.
Your solicitor may suggest a meeting to discuss your instructions in more detail. Once we are clear about what you need, we will produce drafts for your approval within 21 days.
We will discuss the drafts with you and make any changes needed. Once you're happy with the drafts, we will arrange for you to sign.
meetings
You will always be asked if you would like to meet your solicitor. A meeting in person or by telephone is especially useful when taking instructions for a declaration of trust, as the smallest tweak can take the document off in a completely different direction.
Your solicitor may be able to offer you an appointment out of usual office hours if it helps you. Our meeting room and client facilities have level access. Our allocated office parking is right outside the office door. If you are unable to make it to our office, your solicitor will come and see you at home.
Timescale
Your solicitor will send you a draft declaration of trust with a detailed letter of advice within 21 days of receiving your instructions.
Once you have received the draft we will ask you if you are happy with it, or if you would like to include any additional points.
When you are satisfied with the draft we will arrange for you to sign it and submit an application at Land Registry for the document to be noted on the register of title for the property.
We aim to complete all declarations of trust within two months.
Fees for declarations of trust
The cost of your declaration of trust reflects the value of proper advice. We refuse to "print out" a one size fits all template. Our advice is tailored to you, not the other way around. Our fees reflect our solicitors taking proper time to consider your instructions and situation, the best and simplest way of recording the terms of your declaration of trust as well as supporting you throughout the process with clear advice.
Included in our fees
All fees include:
Properly considering your situation, including a review of your current circumstances, aims, priorities and how best to protect you and your assets;
Advice from a specialist solicitor tailored to your needs and delivered in a friendly and straightforward way;
A draft for you to approve including a detailed letter of advice;
Preparation of final signature copy and witnessing service;
Storage in our in-house safe storage system; and
Electronic copy for your records.