Declarations of Trust

When you buy a property with another person, you do so on trust for both of you. If either or both of you later decide to sell, the proceeds will be divided based on how the property was originally held.

There are two main ways to own a property jointly:

Joint Tenants

• Both owners jointly own the entire property with no divisible shares
• If one owner dies, their share automatically passes to the surviving owner, regardless of what their Will states
• Neither owner can leave their share to someone else in a Will
• While a Will cannot override joint tenancy, it’s still important to have one – especially if both owners were to pass away

Tenants in Common

• Each owner holds a distinct share of the property, which can be equal or unequal (e.g. 50/50 or 75/25)
• If one owner dies, their share passes according to their Will (or intestacy rules if there is no Will)
• The surviving co-owner retains their share but does not automatically inherit the deceased’s share unless named in their Will

Why you need a Declaration of Trust

Many buyers assume their relationship will remain stable, but circumstances can change. A Declaration of Trust is a legal document that protects each person’s interest by clearly setting out:

• How the property was purchased
• The agreed shares of ownership
• What happens to the proceeds if the property is sold or transferred

Having a Declaration of Trust helps prevent disputes and avoid costly legal battles if disagreements arise in the future.

Why choose us?

At Leigh Duncan Solicitors, we can prepare and register a Declaration of Trust for a fixed fee, giving you clarity and peace of mind. We also recommend that anyone buying as tenants in common has a Will in place to ensure their share passes according to their wishes.

We offer fixed fee pricing for Declarations of Trust – enquire today for details or to book an appointment.