Amending trust of deed form 90/10 split to 50/50

HAYDAN2002

Hello.

How easy is it to amend a trust of deed between two people not married from 90/10 to 50/50. I believe there is no mortgage on it or a very small one. According to ai they can do it for free by printing out forms and having a witness signing it . But i doubt that. Also how much would a solicitor charge for this simple amendment if it is not possible for free. Thank you very much to anyone who answers.

Dan

poseidon1

You are correct, there is no internet form you can print off to vary or cancel a declaration trust in respect of stated shares of beneficial interests in real estate.

The original declaration of trust may possibly have been prepared via online templates such as 'Rocket Lawyer' but would have needed to be personalised to become a bespoke document that (amongst other considerations) not only identify the beneficial shares, but how property proceeds would be shared on sale or separation of the parties and how respective contributions to any joint mortgage would effect ( or not ) the stated intial shares. Following article explains -

https://www.parachutelaw.co.uk/news/property/can-a-declaration-of-trust-be-changed

The parties to the trust will either need to execute a bespoke deed of variation ( if such is provided for in the trust deed ), or rescind/surrender the trust in its entirety and draw up a new agreement. Needless to say a solicitor should draft the relevant document for the parties to execute and advise on the legal effect thereof.

Hopefully the property in question was at all times the principal residence of both parties.

If not, the party reducing their share by 40% will have made a disposal for CGT purposes of their equitable interest with a potential tax charge thereon. Furthermore they will have also made a gift of that 40% share for IHT purposes, and required to survive 7 years for the gift to fall out of account. None of these potential tax consequences would apply if the parties were married.