When should a deed of trust be drawn up?
A deed of trust, also known as a declaration of trust, is a legal document that outlines the ownership and management of a property when held by two or more people. This document plays an important role in clarifying the rights and responsibilities of each party involved.
What does the declaration of trust include?
A declaration of trust usually includes detailed information about the property in question and the parties involved. It will list the names and contact information of all co-owners, along with their respective shares or interests.
The document should outline the specific rights and responsibilities of each co-owner, including their right to use the property and their financial obligations. It will also state who has the rights and responsibilities concerning decision-making.
When is a deed of trust needed?
A deed of trust should be considered whenever individuals decide to jointly own property. In April 2023, there were 39,580 completed house sales in the UK.Whether it is a family home or an investment property, having clear and legally binding documentation in place becomes essential.
Deed of assignment v deed of trust
Unlike a deed of trust that is drafted at the point of purchase, a deed of assignment is written when you own the property and want to assign some or all of your ownership to someone else.
A deed of assignment is a formal and binding agreement that outlines the terms of the transfer, including the details of the asset, the parties involved, and the consideration exchanged. An example is a transfer between a husband and wife for tax purposes on a buy-to-let. More information can be obtained from companies such as https://www.parachutelaw.co.uk/deed-of-assignment.
Always seek professional legal advice to fully understand your legal obligations, rights and responsibilities.