Confusion about status of a property partially left in trust to me

xylophone

I've just seen the scan and all is says is Title Absolute, PROPRIETORS - Mrs Mum of Address 1 and Ms Me of address 2.

Then a "RESTRICTION: No disposition of a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court."

Then you and your mother are tenants-in-common?

tante

xylophone wrote: »

Then you and your mother are tenants-in-common?

I think so, given that my mother and father were tenants in common, but now it turns out that the will doesn't actually leave my dad's half of the house to me at all if I understand it correctly - it is left to 'the Trustees', who are named as both me and my mum. There are no percentages stated, so I guess that would by default be half of his half to me, and half to my mum? So I was left a quarter of it.... but the 'residuals' were left all to me (don't think there were any).

If I type in verbatim the two parts of the will that seem relevant is there anyone who could translate from legalese for me and tell me if this is right? My mum doesn't even seem to have the faintest idea about what has been set up or why and I am getting so frustrated...

tante

getmore4less wrote: »

Standard for a will to set up the trust.
No separate trust documents needed.

Often you also make it clear the life tenant is responsible for the upkeep but when it is family often gets overlooked.

You will be legal owner as a trustee.

There is no need for that to be documented on the land registry.

Sorry, I'm getting confused by different posts seeming to conflict - when you say I am legal owner as trustee (even if that might be less than half of the property, depending on what confusing will means), does that mean I SHOULD have to pay second home rate stamp duty if my mother - life tenant - changes this property for another one?

xylophone

Have a read of these.


https://wards.uk.com/online-services/legal-guides/flexible-life-interest-trusts/

http://www.greenwoods.co.uk/knowledge-base/private-client/life-interest-trusts/

http://www.telegraph.co.uk/finance/personalfinance/insurance/longtermcare/10946259/Am-I-affected-by-the-new-rules-on-trusts.html

http://www.skerritts.co.uk/pages/10+things+advisers+need+to+know+about+the+residence+nil+rate+band


Would it be as well to consult a STEP solicitor who will examine your father's will and advise on any action that needs to be taken?

http://www.step.org/member-directory

Land_Registry

xylophone wrote: »

Then you and your mother are tenants-in-common?

That is not strictly true although many people will look for this type of restriction, known as a form A, as evidence that the joint proprietors are tenants in common.

The most likely scenario for the OP is that they are TIC on the basis of the will/trust being referred to. It appears they also registered the form A to protect that trust

As getmore4less posted the will/trust is not documented with us. So for example you could have a will/trust which makes you TIC but no form A restriction is registered.

And you could have a form A restriction on the register by default as no details of how the property was to be held were provided when the JPs were registered.

Hence the register is not the definitive source re whether you are JTs or TICs.

xylophone

Hence the register is not the definitive source re whether you are JTs or TICs.

Indeed - the "practice guide" is linked in post 6.

It seems to me that what needs to be established is whether by some action of mother or solicitor (?) the OP now has a beneficial interest in the property in her own right or whether she and her mother are legal owners of the share in the property as Trustees of a Flexible Life Interest Trust as set out in

http://www.greenwoods.co.uk/knowledge-base/private-client/life-interest-trusts/ (which also details SDLT/GGT/IHT position) ? (And see posts 15 and 19).


The share of the property is within the Trust and the Trustees hold as legal but not beneficial owners (although in this case the beneficiaries of the Trust are the trustees.

It seems to me that for peace of mind and clarity as to the position, the OP would be well advised to see a STEP solicitor who would examine her father's will and advise.

SDLT_Geek

tante wrote: »

Sorry, I'm getting confused by different posts seeming to conflict - when you say I am legal owner as trustee (even if that might be less than half of the property, depending on what confusing will means), does that mean I SHOULD have to pay second home rate stamp duty if my mother - life tenant - changes this property for another one?

My view is that if, as seems likely, you and your mother as registered proprietors of the property are the legal owners holding on trust as to:
(a) one half for your mother absolutely (the part she always owned)
(b) the other half on the trusts of your father's will, with a life interest to your mother and a remainder to you

then I would not expect the surcharge to be due:

1. When the house your mother lives in is sold and replaced with another for her held on the same ownership structure or
2. When you bought your first property.

SDLT_Geek

Tante, you were going to go and see the solicitor to get an understanding of the will trusts and how the property is held. Did you end up with a satisfactory answer?