Declaration of Trust?? Instead of a will?

Pinkywink

We went to update our wills last week and the solicitor tried to talk us into a declaration of trust. We are just about to buy a house together and it will be a 60/40 split. My husband has a child from a previous relationship and we want to split my % between my children and he wants to split his % between his children. We want each other to be able to remain in the house until we die.

What are the pros and cons?

DUTR

Gotta ask, why didn't you ask the solicitor whilst you were there?

Pinkywink

I did but we came away feeling he was selling a product. He smoothed over a lot

DUTR

Pinkywink wrote: »

I did but we came away feeling he was selling a product. He smoothed over a lot

Perhaps because there is a 60/40 split in the property
A declaration of trust confirms the true ownership of a property in the proportions contributed by each party regardless of the title entries at the land registry. It can allow an owner not protected by being a registered owner of a property at the land registry to actually be an owner and be protected as such. The declaration of trust can be noted at the land registry, alerting future purchasers that the registered owner is not alone in owning the property.

SmlSave

I'm assuming that your Wills leave your estate to your children? If so a declaration of trust is all you need.

TBagpuss

You need a declaration of trust for the property. This can be done as part of the process of buying the house, and should be clear about the percentage ownership. It will be relevant if one of you dies, or in the event that you were to separate.

Then you each need to make a will to include provisions for what will happen when one of you dies, including who will be responsible for things like insurance and maintenance of the property.

Pinkywink

Thanks so much for the replies.

So a declaration of trust will allow my husband to split his share 3 ways and I split mine 2 ways to our children?

If our children marry, but then later divorce, could we lose our house??? Or will that only be relevant when one of us has died and the share is sat in the trust until the surviving spouse passes it to the children?

I've never heard of it before and wondered why other people don't do it.

theoretica

Are you sure he wasn't talking abouthaving both a declaration of trust and wills?

Pinkywink

Yes we are having both. I thought you could specify exactly what you wanted in a will.

Can you not be specific in a will to save having a trust?

TBagpuss

Pinkywink wrote: »

Yes we are having both. I thought you could specify exactly what you wanted in a will.

Can you not be specific in a will to save having a trust?

You can have a trust within a will, but if you own as enants in common it is sensible to have the declaration of trust as that is relvant not only if one of your were to die, buit also in the event that the two of you were to split up.

In terms of your children splitting: While you and your husband are both alive, you own your house, so your children's wishes, or their relationships or divorces are irrelevant.

When the first of you dies, as I understnad it, you want the surviving sppouse to be able to continue to live in the house, but for your husband's share ultimately to go to his children and your share to yours.

This is where the wording of the trust deed and of the will is important.

Provided it is drafted correctly, then no, you would not lose your houe is one of your childrne or step children were to divorce, because they would only become entitled to their interest in the property after both you and your husband had died. The trust set up in the will would simply mean that if you died first, your hsuabd could not then chose to leave eveything to his children and nothing to yours, or vice versa.

It does sound as though you ned to go back to the solciitor (r to a diferent one, if necessary) and sit down with them and go through this until you are sure you understnad what you are doing and what the impact will be.

Mojisola

Pinkywink wrote: »

We are just about to buy a house together and it will be a 60/40 split.

Pinkywink wrote: »

So a declaration of trust will allow my husband to split his share 3 ways and I split mine 2 ways to our children?

The declaration of trust sets out that you own the property 60/40.

The wills set out what happens to his 60% and what happens to your 40%.