Divorce & Family
We are a leading team of Divorce and Family Solicitors with our specialist divorce solicitors providing expert advice about divorce and separation.
Our property lawyers will explain every step of the conveyancing process, and make it as professional, swift and seamless as possible.
It is not uncommon for parents to gift their children part or whole of their house deposit to help them onto the buy a residential property and move on to the property ladder. Naturally then, they will want to hold a beneficial interest in the property and protect their contribution from their child’s partner, especially as there is no certainty that they will stay together.
If you have considered, or have already decided that you are going to help your child and their partner with a house deposit, you need to make sure that, in the event that something goes wrong, you have taken the necessary steps to protect your interest in the property. A hassle-free way to do this would be to create a declaration of trust between your child, their partner and yourself.
An example scenario would be:
If you had no declaration of trust in place, you would simply have no automatic right to your money and neither would your daughter. In most situations the proceeds of sale are simply split 50/50 between the couple. This would result in you losing thousands of pounds. By putting a declaration of trust in place you are safeguarding your financial interest in the property and ensuring that, should anything happen, you get your money back.
For example, in relation to the sale proceeds of the property, the declaration of trust would stipulate that:
If the couple marry and get divorced then circumstances could change and it would be left to the divorce courts to decide how the money is split. However, having a declaration of trust in place would be an advantage in this situation, as it would be used in the courts as a persuasive argument.
If you feel that you need to protect your interests and want that added peace of mind, then call Poole Alcock today at any of our Cheshire based offices. Our team of friendly specialist solicitors are happy to help.
As the old saying goes, it’s better to be safe than sorry!
For further information, please get in touch using our contact form for a consultation.
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