A Trust Deed is a legally binding document recording individual contributions to the purchase price and / or how the net sale proceeds are to be split on eventual sale. It is helpful to clarify what happens on sale if the Buyers should separate and it is not amicable.
If one party is investing significantly more money in the property it is advisable to have a Trust Deed prepared. This will provide certainty as to the parties intentions and can be relied upon in any future legal proceedings. The Deed will make clear who gets what on eventual sale after payment of legal fees, disbursements, estate agents fees and mortgage repayment.
A Trust Deed, or Declaration of Trust, is additional to your conveyancing matter and will require a further legal fee and it should be protected by registration of a restriction on the property deeds. The deeds are the office copies registered at HM Land Regustry. The restriction is registered at the same time as the purchase so the Trust Deed needs to be drafted, approved and signed before completion occurs.
See also my Co-Ownership article covering Joint Ownership and Tenants in Common.
You should also consider having a Will drafted when you own property. If you pass away without a Will your estate and assets are subject to intestacy law. This means your assets may not go to those you want them to.
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