A client recently contacted me to say that her mother needed a power of attorney. After asking some questions it became clear that it would not be possible for a power of attorney to be prepared on this occasion because mother had advanced dementia so was...
If you are buying a property with someone, or moving in with them, or already living together, or contributing towards improving a property, you may need a Declaration of Trust.
What is a Declaration of Trust?
It is a statement which sets out who benefits from that property. It will often reflect the contributions made by each party to the purchase price or the cost of improvements and states what proportions each will receive once the property is sold. A Declaration can also confirm who will be responsible for the mortgage and who will pay the outgoings and cost of repairs. It can include provisions to deal with the situation where one party wants to buy out the share of the other party. A Declaration of Trust can have implications for Inheritance Tax & Capital Gains Tax purposes and we can advise you on these matters, in conjunction with your accountant, if necessary. We can prepare a Declaration of Trust to deal with expected and unexpected events which may happen in the future such as a sale of a property, the breakdown of a relationship, or death. A Declaration can provide peace of mind and help to avoid uncertainty and distress in later years.