Can a Declaration of Trust be Changed
Key Takeaways
- A deed of trust can't be changed, but you can update the terms with a deed of variation, or, replace the old deed using a deed of surrender.
- This will require the consent of all the parties to the declaration.
- If you want to amend the declaration of trust before you sign it, our fixed fee includes one revision, free of charge.
A deed of trust is a declaration of trust that has been executed as a deed. The declaration of trust states the beneficial interest, but the full deed sets out further intentions regarding outgoings and sale. For this article we will use the terms interchangeably.
Can a trust deed be changed?
Once a deed is executed it can't be changed, however, it is possible to change or update the intentions of the original deed, using a deed of variation. A deed of variation is more commonly used when varying the terms of a lease, or where a beneficiary agrees to change a deceased person's will. It is a document, executed as a deed, which varies the previously agreed terms.
It may be easier to scrap the old deed using a deed of surrender and execute a fresh one, exactly aligned with your new intentions.
We can draft a deed of variation or a deed of surrender and a brand new deed of trust, to update your intentions for the property. If you are in dispute over your beneficial shares, our property litigation team specialise in ToLaTA claims and offer a free initial consultation to determine whether our services are right for you. Get in touch to see how we can help.
Can a trust deed be amended?
Once executed, a deed cannot be amended. However, you can have the deed amended or redrafted as many times as you like before you sign it, as long as you are willing to pay the solicitor for the extra work. At Parachute Law, your fixed fee includes one revision. If you would like to amend the first draft of your deed of trust, please let us know as early as possible, so we can correct this for you at no extra charge.
How do I get rid of a declaration of trust?
There are three main ways to get rid of a declaration of trust:
1. All parties agree that their intentions have changed
The declaration of trust, if drafted and executed properly, is solid evidence of all parties' intentions at the time. You can't just get rid of it if you decide you want a different share of things. However, circumstances do change, so if all parties agree that they want to change the terms in light of present circumstances, this can be achieved.
2. A family court may overrule the deed
This can happen if the court determines that the declaration of trust is fundamentally unfair and would cause serious detriment to one or more parties in divorce or dissolution proceedings. They can change your beneficial split when awarding shares and assets.
3. When the property is sold
The proceeds are split according to the deed and when your conveyancing solicitor is satisfied that the terms have been met then they will remove the restriction placed on the title at the land registry.
Frequently Asked Questions
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