Trust Issue with sister

SoniaB64

In order to help my sister to raise money for a divorce settlement, she transferred her property to me as she was no mortgage-able and set up a Trust so that I became the legal owner and she became the beneficial owner. We agreed that I would buy her out and use the proceeds to purchase another property. The agreement was also that we would dissolve the Trust on the first property and transfer it to the new property where she now lives. However, she has now decided that she doesn't want to transfer the beneficial ownership of the first house and keep both properties. The first property was rented so the income covered both mortgages so my sister lives rent free. The tenants have given notice which means no rental income.

I have been told my sister's solicitor that as legal owner, I am responsible for both mortgages. My sister has been living in the other property for over a year and has no intention of making any contribution to cover either mortgage. She also refuses to sell either property. I have conceded following legal intervention that she is the beneficial owner of both properties. She is not on the title deeds and there is no restriction in place.

As Trustee can I dispose of both properties without her consent? I have no interest in either property and have no problem in giving her the proceeds of the sale (when it happens) just to get rid of the problem but will I be able to pursue her for any losses I incur as a result of being legally responsible for paying the mortgages?
Its a messy one!

AdrianC

This is definitely one for paid legal advice.

It's a sad indication of how a genuine, if ill-advised, attempt to help can backfire horribly expensively when faced with the realities of the selfishly entitled.

"Blood is thicker than water." Ha.

getmore4less

When you mortgaged the properties did you declare that you had no beneficial interest in either property(clearly not the first but the second not so clear).

When you bought her out did you not have an agreement that the money was specifically to buy the beneficial interest in the first property?

Or did you just gift her the money?

or did you buy the second property and still have that in your name(legal and beneficial?).

When you bought the second place do you still have beneficial interest in that or did you set up another trust before dissolving the first one.


Get your own solicitor to unravel the mess.

csgohan4

sadly another thread on why money and family shouldn't mix, as above you need legal advice and push through

G_M

Pity the ex-husband - sounds like he was somehow diddled during the divorce settlement by the original property transfer...

[Deleted User]

Any legally correct answers will depend on proof via paperwork as to any agreements made between you and your sister. We aren't solicitors, we can't see the paperwork. A small clause or two could change the answers.

We would be irresponsible to venture an opinion (which is all it would be) and you would be extremely silly to make any decisions based on our opinions lol.

You need to see a solicitor.

I hope you are able to sort this out.