A Declaration of Trust is a document that sets out the legal and beneficial ownership of a property (although it can be used for other assets). It can set out contributions to deposits where they are unequal, responsibility for outgoings and include the right of first refusal in the event of the property being sold.
More often than not, cohabiting couples but it's not exclusive to them. The document can be used for a number of reasons including tax planning or when blending two families together.
The document does not replace a Will and a cohabitation agreement should also be considered. We can put you in touch with a family lawyer at gunnercooke who can assist with a cohabitation agreement.
Yes. Broadly speaking, the income entitlement needs to follow the capital ownership, but not always. There are various other tax compliance considerations including Inheritance Tax, Capital Gains Tax, Income Tax and Stamp Duty Land Tax. It's therefore important tax advice is taken before entering into any agreement.
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