10 Aug 2026
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66 South Street, Oakham Rutland, LE15 6BQ
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27a Market Place, Market Deeping, PE6 8EA
01778 230 120 01778 230 129 enquiries@hegarty.co.uk10 Aug 2026
Buying a property with someone else is an exciting milestone, but it's also one of the biggest financial commitments you'll make. Whether you're buying with a partner, friend, or family member, it's important to think about how your ownership will be recorded and what could happen if circumstances change in the future.
A Declaration of Trust is a legal document that records how a property is owned and how the proceeds should be divided if it is sold. While many people assume it is only needed in complicated situations, it can provide valuable clarity and protection in a wide range of circumstances.
In this article, we explore five common situations where a Declaration of Trust could help, and answer some of the questions we're frequently asked by clients.
A Declaration of Trust is a legally binding document that sets out the financial interests of each owner in a property.
It can record:
By documenting these arrangements from the outset, a Declaration of Trust can help reduce the risk of misunderstandings and disputes later on.
If you're unsure whether one is right for your circumstances, taking legal advice before you complete your purchase can provide valuable peace of mind.
Every property purchase is different. Here are some of the most common situations where we advise clients to consider putting a Declaration of Trust in place.
It's increasingly common for one buyer to contribute a larger deposit than the other.
Without recording this arrangement, there may be uncertainty over how the proceeds of any future sale should be divided. A Declaration of Trust can clearly record each person's contribution and ownership share, providing certainty for everyone involved from the outset.
Many first-time buyers receive financial support from parents or grandparents, but mortgage lenders usually require this to be treated as a gift.
While this can make buying a home possible, it may raise issues if the property is later sold, or relationships change. Although the gifted deposit cannot usually be returned to the parent where there is a mortgage, a Declaration of Trust can help protect the child's financial interest in the property.
If family members are helping you onto the property ladder, it's worth discussing your options with a solicitor before you complete your purchase.
Buying a property with a friend or sibling can be an excellent way to get onto the property ladder.
However, it's important that everyone has a clear understanding of their financial position and ownership from the beginning. A Declaration of Trust can record each person's interest in the property, helping to avoid confusion if the property is sold or one owner wishes to move on.
Many couples buy a home together before getting married or without intending to marry at all.
Unlike married couples and civil partners, unmarried couples do not have the same legal rights if their relationship ends. A Declaration of Trust can help clarify ownership arrangements and record each person's financial interest, providing greater certainty should circumstances change.
Whether you're investing with family members, friends, or business partners, it's important to agree how ownership, costs and profits will be shared.
A Declaration of Trust can record those arrangements from the outset, helping everyone understand their rights and reducing the risk of disputes as the investment develops.
Many people enter into property ownership arrangements with the best of intentions.
A Declaration of Trust isn't about mistrust, it's about clarity. It records what has been agreed and helps protect everyone involved if circumstances change in the future.
Yes. A Declaration of Trust can record contributions made by one party or by family members helping with a purchase and protect the benefit of those contributions for the intended recipient.
However, where there is a mortgage, a gifted deposit cannot usually be protected so that it is repaid directly to the person who made the gift.
Yes. You can register as tenants in common at HM Land Registry without having a Declaration of Trust. However, if:
a Declaration of Trust is strongly recommended. While HM Land Registry records that you own the property as tenants in common, it does not record each person's ownership percentage or the financial arrangements between you.
Without a Declaration of Trust, disagreements can arise about what each owner is entitled to if the property is sold.
Absolutely. A Declaration of Trust can reflect whatever ownership shares have been agreed between the parties, whether that is 50/50 or any other proportion.
Yes. If circumstances change, it is often possible to update or replace a Declaration of Trust. However, all parties must agree to the changes, and a new Declaration of Trust will usually need to be prepared.
No. A Declaration of Trust records how a property is owned during your lifetime, while a Will determines what happens to your assets, including your share of a property, when you die.
The two documents often work together. Having both in place helps ensure your ownership is protected during your lifetime and that your share passes in accordance with your wishes after your death.
A Declaration of Trust is not a one-size-fits-all document. Every property purchase and every relationship is different, so it's important that your agreement accurately reflects your circumstances and intentions.
Professional legal advice can help ensure your Declaration of Trust is properly drafted, legally effective and tailored to your needs. It can also identify any wider considerations, such as making a Will or reviewing your estate planning, to ensure your arrangements work together.
At Hegarty, our experienced Wills, Trusts and Probate solicitors regularly advise individuals, couples, families and property investors on Declarations of Trust and wider estate planning matters.
We take the time to understand your circumstances, explain your options in plain English and prepare documents that reflect your wishes and protect your interests.
Whether you're buying your first home, investing in property or simply want reassurance that your ownership arrangements are properly documented, we're here to help.
If you'd like to discuss whether a Declaration of Trust is right for you, our friendly team is always happy to provide practical advice and answer any questions you may have.
Whatever legal support you need, our experienced and highly skilled solicitors and legal advisors are here to help. With expertise across a wide range of legal areas, we provide clear, practical advice tailored to you. What sets us apart is our commitment to understanding your needs and delivering the best possible outcome with a personal touch.
