Property in trust

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    Property in trust

    What exactly is the procedure for placing your property in trust. Do you just have to get a trust deed drawn up or do you have to get a trust deed drawn up
    place a restriction on land registry to state the property is in trust ?

    #2
    What is the purpose of your wanting to set up a trust ? You should get a quote from 2-3 solicitor firms to do what you want and then decide after comparing the offers.

    https://www.moneyadviceservice.org.u...ing-up-a-trust

    Taxwise, you should expect the trust to pay tax charged at 40% on annual rental profit.

    Comment


      #3
      Basically I had a accident in work and I had a personal injury trust set up . The trust is a bare trust and I am the sole beneficiary of the trust. I am a trustee and my mother is a trustee . I bought a BTL property the with the trust funds and the property is registered in mine as my mums name ( trustees). I want to know can this be classed as in trust via the deed ? Or do you have to do anything else to place the property in trust ?

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        #4
        That property is within the trust already.
        You and your mother own it as trustees.

        It's helpful to have a record of that and why you bought it and what will happen to the revenue (because if the revenue goes into the trust, the trust pays tax on it, if it goes to (say) you, it's your income and you pay tax on it).
        The easiest way to do that is to have a trustees meeting and minute the decision(s) as items.
        It doesn't have to be formal and can be a nice simple one sides sheet of paper.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Does your property title show the title holders' names as " You and Mother" or" You asTrustee of PC Trust and Mother Cooper as Trustee of PC Trust" ?

          Comment


            #6
            jpkeates,

            Does the restriction have to be shown on land registry or can it still be held in trust via the deed.

            The revenue gets paid into trust bank account which is then taxed. This is done via self assessment on the beneficiary of the trust.

            Comment


              #7
              Originally posted by Gordon999 View Post
              Does your property title show the title holders' names as " You and Mother" or" You asTrustee of PC Trust and Mother Cooper as Trustee of PC Trust" ?
              I am glad you replied with this Gordon999 as I have a property registered with title holder's me and mother and I have another property registered title holder as "The PC Trust".

              Why do you ask ?

              Comment


                #8
                There's no need to notify the land registry, although that is possible.

                A trust is quite a flexible concept.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  So if the restriction is removed which I placed on the property then the property is still legally in trust as there is a deed ?

                  Comment


                    #10
                    The restriction is to make the situation public and to prevent any sale that breaches the terms of the restriction.
                    It's a completely separate thing to the trust (although it could be in favour of a trust).

                    Anyone can have a restriction on a property (that the owner has agreed to).
                    A trust can exist on a property without any charge or restriction.
                    However, trustees are meant to offer fiduciary duty to the trust, so not placing a restriction on a valuable asset might breach that duty.

                    As many trusts are really family arrangements for tax purposes or to prevent young people being given things to avoid IHT doing irresponsible things, the issue of the beneficiaries of a trust taking action against the trustees is usually remote.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #11
                      So I could remove restriction, the property is still left in trust . Reason I ask is having the restriction on the BTL property may block a re-mortgage ?

                      Comment


                        #12
                        For the property registered under your's and mother's name, does the property title document mention the title holders are holding the property as trustees of "The PC Trust" ?

                        You can buy a copy of the property title from Land Registry Online for 4 pds by credit card and download to your computer, if you do not have a paper copy at home.

                        When mortgage lenders provide a loan, they register a charge against the property title at Land Registry so that the property cannot be sold or given away without the mortgage loan being repaid . So this charge is a form of restriction registered by mortgage lenders to protect their loan.

                        Comment


                          #13
                          Gordon999,

                          The title document just has trustees names not trustees of "The PC Trust".

                          Comment


                            #14
                            You have me confused . Do you mean the title holders are shown as (a) or (b) ? :

                            (a) P Cooper and Mother Cooper ( persons names only and trust is not mentioned anywhere in property title ) ?

                            ( b) P Cooper (as Trustee) and Mother Cooper ( as Trustee) but "The PC Trust" is not mentioned in property title. ) ?

                            Are you wanting (a) or (B) changed to show "The PC Trust " as title holder ?

                            Comment


                              #15
                              Gordon999,

                              At present it is P Cooper and mother Cooper with restriction to say it trust. I think the restriction will block re - mortgage so need to take off. Can it still be in P cooper and Mother Cooper with no mention of trust on title be still legally be held in trust with the deed ?



                              Thanks

                              Comment

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