Declaration of Trust?

bunglesabout

Hi, I was hoping someone would be able to help me regarding the in's and out's of a 'declaration of trust' and how it works?
Basically my mother is providing the lion share of the deposit we are using to buy a new home. She will be living with us, but due to her age, cannot go on the mortgage.
I want to protect her investment in our new home and the solicitor advised getting a 'DOT'
I was wondering if anyone here has had experience of this and what it entails? Good points, bad points etc......

Bungle

SmlSave

Basically it protects her interest as you like. Its a standard document and normally costs £100-£200 plus VAT.

It may also be a good idea to change your Wills so that your mother has a right to reside at the property should the worst happen

bunglesabout

Thanks for the reply. We will definitely amend our wills once the sale goes through, but I was wondering if there were any risks or problems associated with getting a 'DOT', or whether the process is straightforward and sufficient to protect my mum?
I just want to make sure that if anything were to happen to me, this document, plus my will, would safeguard her home/finances.

Bungle

Kyrae

The declaration of trust can specify who gets what share of the money from the sale of the house, if for any reason the house needs to be sold. It can also state what will happen if one party wants to sell the house at any point. It's completely up to you both as to what is written in the declaration and solicitors can advise. You'll both need a different solicitor to represent you, and it's nice and easy and simple, definitely a good idea

may_fair

bunglesabout wrote: »

Thanks for the reply. We will definitely amend our wills once the sale goes through, but I was wondering if there were any risks or problems associated with getting a 'DOT', or whether the process is straightforward and sufficient to protect my mum?
I just want to make sure that if anything were to happen to me, this document, plus my will, would safeguard her home/finances.

Bungle

Yes, it's straightforward. The solicitor drafts it, and the deed is then signed/witnessed. That's it.

Assuming it is correctly drafted and executed, it is a legally enforceable document and will protect your mother's interests.