Declaration of Trust: who really owns what in your propert

Last verified: 19 November 2025 (England & Wales)

A Declaration of Trust (also called a Deed of Trust) formally records how much each person has contributed to a property, how future costs will be shared, and how the sale proceeds will be divided if the property is sold or one owner leaves. It protects everyone’s interests, clarifies ownership, and helps prevent future disputes, especially for unmarried couples, family members, or joint investors.

A Declaration of Trust is your written record of “who owns what” and what should happen to the money if circumstances change.

What is a Declaration of Trust?

In UK property law, the names on the title deeds identify the legal owners. A Declaration of Trust records the “beneficial” shares behind those legal names and any special arrangements the owners have agreed upon.

It can set out:

• How much each person paid in deposits or lump sums.
• How mortgage payments and major works are treated.
• Each person’s agreed share of the equity.
• How the net sale proceeds should be divided if the property is sold or one owner buys the other out.

Without an explicit written agreement, the law may assume equal ownership even where contributions were very different. That is often when costly disputes appear later.

When a Declaration of Trust can help

A Declaration of Trust is commonly used where:

• People are putting in unequal deposits or paying the mortgage in different proportions.
• Parents or other relatives are helping a child onto the property ladder.
• Friends or business partners are buying a property together.
• Couples want to share buy-to-let income in a tax-efficient way while keeping ownership clear.
• Someone is contributing to a property they are not actually named on (for example, moving into a partner’s house and paying towards the mortgage or improvements).

If money is going into a property and the ownership is not obviously equal, a Declaration of Trust is usually worth considering.

What can a Declaration of Trust cover?

Every document is bespoke, but typical points include:

• Each party’s initial deposit and how that is protected.
• How ongoing mortgage payments, insurance and major repairs are treated.
• The percentage or fractional shares each person owns.
• What happens if someone puts in extra funds later (for example, for an extension or new kitchen).
• How to share any rental income and running costs on an investment property.
• What should happen if one person wants to leave, be bought out or sell the property.

The Declaration of Trust often sits alongside:

• The way the property is held at the Land Registry (usually as “tenants in common”, which can be 50–50 or any other split that suits you).
• A restriction on the title so the property cannot be sold or transferred without involving all relevant parties.
• Updated Wills for each owner so their share passes to the right people if they die.

The Declaration of Trust explains your shares while you are alive; your Will ensures your shares pass to the right people when you die.

CASES

Parents helping a child onto the property ladder

Emma is buying her first home. Her parents gift her £60,000 towards the deposit; Emma contributes £10,000 of her own savings, and the mortgage covers the rest. To keep things clear, we prepare a Declaration of Trust stating that, after the mortgage is repaid, the first £70,000 of equity is returned to Emma, and her parents’ contribution is returned, with the balance split equally between Emma and any future partner she adds to the title. Everyone understands what is protected and what is shared.

Unequal deposits between an unmarried couple

James and Olivia buy a house together. James puts in £80,000 from the sale of his previous home; Olivia adds £20,000. They agree to split the mortgage 50–50 and treat future improvements as joint. Their Declaration of Trust records that, on a sale, the first £100,000 of equity is returned to them in the same proportions as their deposits, and any remaining profit is divided equally. If they later separate, the figures are already agreed in writing.

Friends buying a rental property as an investment

Three friends jointly buy a buy-to-let property. One provides most of the deposit, another takes responsibility for the mortgage, and the third handles the practical side: finding tenants and managing repairs. Their Declaration of Trust sets out their different roles, their percentage shares, how rental income will be divided, and how they will handle major decisions or a future sale. If one wants to leave the arrangement, the document sets out how the others can buy them out.

Moving into a partner’s existing property

Laura moves in with her partner, Tom, who already owns his house. She starts contributing to the mortgage and pays for a new kitchen. They both want those contributions to be recognised without immediately adding Laura to the title. A Declaration of Trust records how much Laura has contributed and how that amount – plus an agreed share of any growth – should be treated if they later separate or sell. It gives Laura reassurance without forcing an immediate change of ownership.

Blended family and future inheritance planning

Ahmed and Priya are in a long-term relationship, each with children from previous relationships. They buy a home together, but want their respective contributions protected and want each side’s children to benefit in the long run. Their Declaration of Trust records different ownership shares and how proceeds should be split. Their Wills then make sure each person’s share passes to their own children, possibly through trusts. The document and the Wills work together so ownership, day-to-day living and inheritance all line up.

Helping a child but keeping control of the money

Mr and Mrs Brown release equity from their own home to help their son Daniel buy with his partner, Zoe. Rather than simply gifting the money, they use a Declaration of Trust to show that part of Daniel’s deposit is effectively “family money”. If Daniel and Zoe later sell or separate, the Declaration of Trust sets out how that money is to be repaid or shared, reducing the risk of misunderstanding or dispute.

How it fits with joint ownership and Wills

Most co-owners who need a Declaration of Trust will hold the property as tenants in common, meaning each person owns a distinct share rather than everything automatically passing to the survivor.

Your Declaration of Trust records those beneficial shares and how the proceeds will be split on a sale or buy-out. Your Will then decides who inherits your share if you die. Without a Will, the intestacy rules apply, which may give your share to someone very different from the person you intended.

Joint ownership, Declaration of Trust and Wills are three pieces of the same jigsaw – they all need to match.

How Fern Wills & LPAs works with Declarations of Trust

Formal drafting and registration of Declarations of Trust are legal work reserved to solicitors and other regulated professionals. Fern Wills & LPAs focuses on the planning and coordination stage, then introduces you to an appropriate specialist to prepare any formal deed and Land Registry documents.

Our role typically includes:

• Understanding your goals, contributions and concerns.
• Explaining your options in plain English and how a Declaration of Trust fits with your wider planning.
• Making sure your Wills and any relevant trusts are aligned with the way the property is owned.
• Signposting you to a suitable regulated firm to draft and, where needed, register the document.

We do not insist that you use any particular firm; you remain free to choose your own adviser. Clients usually return to us because of the service they have experienced, not because they are tied in.

Is a Declaration of Trust right for you?

It may be worth exploring if:

• You are buying with someone else and are not contributing equally.
• Family members are gifting or lending you money for a deposit and want clarity on how it is protected.
• You own a buy-to-let with a partner and want to share income in a fair and tax-aware way.
• You are moving into a partner’s existing property and want your contributions to be recognised.
• You are in a blended family and want to balance fairness now with clear inheritance for children later.If you are unsure whether a Declaration of Trust is appropriate, ask. We can talk through your situation, explain the options, and, where suitable, coordinate the legal work through an appropriate specialist firm.

Related Fern Wills & LPAs articles

• Severance of Joint Tenancy
• Right to Occupy
• Property Life Interest Trust (PLIT)
• What Is a Will Trust?