A declaration of trust (also known as a deed of trust) is used to set out the details of who has a financial interest in a property and the extent of that interest.

It is put in place at the time a property is purchased and is a legally binding record of the agreed share each person holds. It can also be put in place retrospectively where it was not done at the time of purchase or simply because circumstances changed over time.

A declaration of trust gives everyone clarity as to the ownership of an interest in property. It is particularly useful where one person contributed more towards the purchase price for instance by way of deposit or where one person will be paying more of the mortgage.

A declaration of trust can also protect money given by a third party towards a property purchase, for example, where parents have given a lump sum/ paid the deposit and wish to set out in what circumstances that would be repayable if at all.

The document can also cover how the property will be dealt with, for example, where one person wants to sell or let it and who will be responsible for outgoings and maintenance.