In the modern world, living arrangements of couples and families have become much more complex than previously.
The Guardian has reported that the percentage of couples who are living together but not married or in a civil partnership has now risen to 22.7% .
There is an underlying complexity in these situations where couples choose to co-own property but forgo the traditional legal framework that marriage or civil partnerships provide. In such arrangements, a Deed of Trust can provide some protections and clarifications about a couple’s rights. But what is a Deed of Trust?
A Deed of Trust is a legal document that clarifies the ownership rights of joint property. It sets out the T&Cs of managing the property, and in effect creates a legal trust, an entity that takes care of assets for beneficiaries. But when can they be used?
Co-owning Property
As well as cohabiting couples, other groups of people may also use a Deed of Trust to lay out their rights in relation to a property that they own together. It’s advisable to do this in cases where a couple are not married. The Deed of Trust cost may depend on the complexity of the arrangement, but for most people this will be a relatively simple affair and firms such as https://www.samconveyancing.co.uk/news/conveyancing/deed-of-trust-4378 can advise you on the cost and time it may take.
Estate Planning
Deeds of Trust can also be a great way to ensure that assets are dispersed and managed as someone intended after they pass away. It’s important to understand that when you put money or property into a trust, you no longer own it. For this reason, you should find the most reputable solicitors possible to advise you on how to enter into such arrangements, and also whom you can trust when you are gone.
Mortgages and Lending
Mortgage lenders and banks contractually use Deeds of Trust to legally secure their interest in properties. This is what lets the bank repossess the home if the borrower defaults. It’s not possible to get a mortgage without this legal tool. Many loans also use Deeds of trust.
Business Partnerships
The break-up of some business partnerships can be as acrimonious as a divorce! For this reason, Deeds of Trust are a good tool to guard against future disagreement over the division of business assets and property. They can also designate each partner’s responsibilities in the arrangement and in the business.
Asset Protection
If a person or business needs to protect assets from potential legal claims, they can create a Deed of Trust to prevent this while maintaining control of the property.