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Declaration of trust

April 2006

Have your parents or friends helped you find the deposit money for your purchase? Have you invested unequal amounts into a property with a partner? Would you feel better if your interest or their contribution was recognised? If you have lent people money, would you prefer to be notified before they could sell the property?

If any of these situations apply to you, your problems could be solved through the use of a Declaration of Trust. This document will set out the background to the property purchase before detailing how the proceeds of the sale should be distributed. In order to protect any investors or lenders, this document should then be registered at the Land Registry and will be recorded as a restriction over the property.

Declarations of Trust can be used to show how much money is owed to a particular person or people. The document can be drafted so that a specific sum is repaid on sale of the property. It is also possible to record the sum as a percentage of the purchase price. This would then take into account any increase in the value of the property between the purchase date and when the property is sold. The contribution could therefore be seen as an investment which may well increase in value over time.

Declarations of Trust could be drafted to cover various situations such as the examples given above. They are unique to your situation and we would be happy to discuss them in more detail.

If you need any help with a Will, inheritance tax planning, Declarations of Trust, or have any questions on anything you have read in this brochure, please call our

HAVE YOU JUST PURCHASED A PROPERTY?

HAVE YOU BORROWED MONEY?

HAVE YOUR CIRCUMSTANCES CHANGED?

DON'T LEAVE YOUR LIFE TO CHANCE

WE CAN HELP YOU PREPARE FOR AN UNKNOWN FUTURE AND PROTECT YOUR FAMILY

For further information give us a call on +44 (0) 1753 486 777.