Planning For 2022

Published date27 January 2022
Subject MatterFamily and Matrimonial, Family Law, Divorce, Wills/ Intestacy/ Estate Planning
Law FirmRussell-Cooke Solicitors
AuthorMs Jemma Pollock

We are into the last week of January and with COVID-19 restrictions also easing, now may be the time that you are starting to think about plans for the rest of 2022. You may have arranged or rearranged your wedding this year, maybe you are planning to buy a new house or renovate your current home, or perhaps it is just booking that long-awaited holiday in the sunshine.

Whatever 2022 brings, if you are making any key life decisions, legal and financial planning should be a priority in that process. Whilst legal documentation may not be the most exciting thing to think about, my experience from working with families for many years is that if they discussed matters in advance and had a shared understanding of their position, it makes the process much easier for them if something does change in the future. The below information sets out some times when considering this is particularly important.

Moving home or renovations

The past two years have brought an increased focus on our homes and many people will be making changes as a result. If you are planning any joint investment in a property, whether it is buying a home with a partner or friend, investing in renovations, or helping a family member with a deposit, it is important to consider the legal implications and practicalities in advance.

Having a Declaration of Trust can solve a lot of issues when co-owning or co-investing in a property, or if someone moves in to a property that you own. These documents are particularly important if a family member is investing in a property, commonly parents helping their adult children with a deposit. They can provide reassurance to everyone involved about how and when the investment will be recovered, and what happens if a friend or new partner moves in. This avoids the risk of lengthy and expensive correspondence or even litigation if a disagreement does arise in the future.

A Declaration of Trust is a binding deed which confirms who is contributing to the property financially and how the proceeds should be divided if it is sold in the future. However, they are also flexible documents that can cover things like payments for a mortgage, what happens if one person invests in renovations, and who is going to live there. Having clarity and certainty about such matters at the outset allows the focus to be on the exciting part of buying or renovating a property rather than worrying about financial practicalities and whether or not any investments are protected.

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