Ever heard of a deed of trust? These legal documents are powerful tools that play a vital role in defining the ownership of properties. They’re essentially the legal blueprint that ensures everyone is on the same page regarding a piece of land or a building. So how exactly should you structure a deed of trust to meet your needs? Let’s take a look:

What’s Your Aim?

Firstly, you need to consider your goals with the deed of trust. Are you planning to co-own a property? Or is the deed of trust part of a mortgage? If it’s the former, the deed of trust needs to specify ownership percentages and what would happen if one owner wants to sell their share. If the deed of trust is part of a mortgage, the focus of the document may be on how the loan will be repaid.

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What Are The Elements?

Here are the key professional terms to be aware of when processing a deed of trust:

Grantor

This is the person who transfers ownership rights.

Trustee

A trustee is the third party in the agreement who holds the legal title.

Beneficiary

This is the person/people who will benefit from the ownership.

Description

The description element of the deed will clearly describe the land or building involved.

Benefits

This section will outline how the income from the property will be divided among the relevant owners.

Succession

The succession will discuss what happens to the property if a beneficiary passes away.

Duties

This will detail the trustee’s duties and responsibilities in managing the property.

Conditions

Finally, the conditions of ownership will include considerations such as buy-out options or any restrictions on how the property can be used.

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Consult With a Solicitor

Now you know the structure of a deed of trust, you’ll need to find a solicitor to create a deed that meets your specific needs and to fund the declaration of trust cost for specialists such as https://www.samconveyancing.co.uk/news/conveyancing/declaration-of-trust-definition-294 Only a solicitor will ensure that your deed complies with all legal requirements.

To find a solicitor, it’s wise to ask for referrals from friends, family and colleagues. People you know who have had positive experiences with an estate planning solicitor are a great place to start.

Structure Your Deed of Trust Confidently

Structuring a deed of trust can be a lengthy process, so it’s important to find a solicitor you can trust. Ideally, you’ll find someone you feel comfortable talking to who explains things in a way you can understand. From here, you’ll be well on your way to structuring a deed of trust that meets your needs.