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Declaration of trust - implications?

Hello all

We have been living overseas, own 3 buy to let houses in U.K. outright and have recently returned to the UK. As I am working full time and my wife isn't, in order to reduce taxable income we have been advised to take out deceleration of trust for 1.5 of the 3 houses we own (I own 1.5 houses on the deeds and visa-versa for my wife)
The process seems fairly straightforward however I am just a bit cautious of the implications in case we were to get divorced in the future? Would this 'automatically' give my wife ownership of the 3 houses? Or if not is it more likely she could claim for all 3 houses?

Obviously we're not even thinking about this but just looking to get a better understanding before going through with the decelerations.

Any advice much appreciated!

Thanks

Daniel

Comments

  • 00ec25
    00ec25 Posts: 9,123
    Combo Breaker First Post
    Forumite
    edited 7 July 2017 at 10:37PM
    even when married you cannot make a declaration of trust in respect of the beneficial ownership of a property where there is no underlying legal ownership

    of "your" 3 properties, only one is jointly owned and, provided it is owned as tenants in Common (not as Joint tenants) that is the only one on which you can make a declaration. For each sole ownership property the legal ownership is vested in you or your wife respectively, neither of you can now suddenly say that you really meant you're holding on trust for the other person.

    given your many posts to do with your property empire over the last 3 months, isn't it time to get proper advice from a professional given your obvious need for accurate and comprehensive advice on UK tax now that you live here instead of abroad in a tax haven and have substantial UK wealth to plan for.
  • ThePants999
    ThePants999 Posts: 1,748
    First Anniversary Name Dropper First Post
    Forumite
    we have been advised to take out deceleration of trust
    If you're married, I'd actually advise you accelerate your trust.
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