House being purchased in a trust and I am a trustee, will I still be considered a first time buyer?

Hi, 
I am a trustee on a trust account along with another family member. - they are purchasing a property via the trust which will be held in the trusts name. I am a trustee on this and have to confirm any payments going out of the account so I assume I will have to sign any paperwork needed to purchase the property. I’m wondering, If the property is purchased through the trust, will I still be considered a first time buyer and able to use my help to buy isa when I want to purchase my own property (whenever that may be) at a later date? 

TIA 

Replies

  • sharpe106sharpe106 Forumite
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    I would think you would lose the status of first time buyer as you are a beneficial owner of the property in the trust. 
  • mobilejomobilejo Forumite
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    sharpe106 said:
    I would think you would lose the status of first time buyer as you are a beneficial owner of the property in the trust. 
    Being a trustee does not make you a beneficial owner - the beneficial owner is the the person who benefits from the trust. Not the trustee.

    A trustee could also be a beneficiary, but OP hasn't suggested that they are also a beneficiary. 

    If the OP is a trustee only and not a beneficiary, they will be okay according to the HTB ISA FAQ's (https://www.helptobuy.gov.uk/help-to-buy-isa/faq/):

    "I have property in a trust, do I still qualify as a first time buyer?
    If you have or had an ongoing beneficial interest in a residential property via a trust, (including a trust created by a will or divorce), then you are not a first time buyer.

    However, you are still a first time buyer if:
    (a) you are named as a beneficiary of residential property in the will of a person who is still living; or,
    (b) if the trust to which you are or were a beneficiary was only created for the purpose of selling the property and other assets following a death or divorce, and the title of the residential property was never transferred to your name or to a trust which you are an ongoing beneficiary; or
    (c) if you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property)."
  • krissy20krissy20 Forumite
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    Thankyou! No, I’m not a beneficiary of the trust - however if anything was to happen to my mum, then the trust will come to myself and my brothers and sisters to sort between us. 
  • HobgoblinBTHobgoblinBT Forumite
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    We had a similar family position.  My wife and daughter purchased a property on behalf of a trust for the benefit of my wife’s mentally handicapped brother.  When my daughter came to purchase her own property she was eligible as a first time buyer for stamp duty purposes as she was able to demonstrate that she was not the beneficial owner of her uncles house by providing the trust documents including the declaration of trust for the trust property.
  • TrickyDicky101TrickyDicky101 Forumite
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    Any particular reason why the property is being bought through a trust?  Does the beneficial owner have capacity?
  • krissy20krissy20 Forumite
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    We had a similar family position.  My wife and daughter purchased a property on behalf of a trust for the benefit of my wife’s mentally handicapped brother.  When my daughter came to purchase her own property she was eligible as a first time buyer for stamp duty purposes as she was able to demonstrate that she was not the beneficial owner of her uncles house by providing the trust documents including the declaration of trust for the trust property.
    Thankyou. If you don’t mind me asking, Was this questioned when she purchased her house then? And did she use an isa or another form or help to buy? - I just don’t want to continue to save in our Isas and assume we will be able to use them and then find out we won’t be eligible because of being a trustee. 
  • sharpe106sharpe106 Forumite
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    However, you are still a first time buyer if:
    (a) you are named as a beneficiary of residential property in the will of a person who is still living; or,
    (b) if the trust to which you are or were a beneficiary was only created for the purpose of selling the property and other assets following a death or divorce, and the title of the residential property was never transferred to your name or to a trust which you are an ongoing beneficiary; or
    (c) if you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property)."
    Surely part c means that as you will be entitled as a beneficiary in the future you are no longer a first time buyer. 
  • mobilejomobilejo Forumite
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    sharpe106 said:

    However, you are still a first time buyer if:
    (a) you are named as a beneficiary of residential property in the will of a person who is still living; or,
    (b) if the trust to which you are or were a beneficiary was only created for the purpose of selling the property and other assets following a death or divorce, and the title of the residential property was never transferred to your name or to a trust which you are an ongoing beneficiary; or
    (c) if you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property)."
    Surely part c means that as you will be entitled as a beneficiary in the future you are no longer a first time buyer. 
    Fair point. Perhaps the OP can clarify.

    I read the OP's comment as meaning that the trust is to hold mum's property on her behalf, but if mum dies, the trust is terminated and the kids will inherit the property that is in the trust. I am assuming the trust only exists because mum lacks capacity, and will not be required as an ongoing vehicle if the property is passed to the children via will.

    If that is the case, (c) still applies as the OP will never be a beneficiary of the trust itself. Being named under a will to inherit does not remove FTB status. 

    Also, there is the fallback of (b) - if the OP inherits, and a bare trust has to be created purely to sell the property and distribute the proceeds, then they also get to keep FTB status.

    The only issue would be if the OP inherits the house (or a share) and keeps it, before buying their own property.
  • HobgoblinBTHobgoblinBT Forumite
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    krissy20 said:
    We had a similar family position.  My wife and daughter purchased a property on behalf of a trust for the benefit of my wife’s mentally handicapped brother.  When my daughter came to purchase her own property she was eligible as a first time buyer for stamp duty purposes as she was able to demonstrate that she was not the beneficial owner of her uncles house by providing the trust documents including the declaration of trust for the trust property.
    Thankyou. If you don’t mind me asking, Was this questioned when she purchased her house then? And did she use an isa or another form or help to buy? - I just don’t want to continue to save in our Isas and assume we will be able to use them and then find out we won’t be eligible because of being a trustee. 
    From memory I told my daughter to raise the subject with her solicitor, but I believe they would have had to carry out a search anyway as part of their due diligence as the Solicitor has a duty of care to make sure that stamp duty is paid at the correct rate.  She used her help to buy isa capital and the bonus, claimed after the completion was used for other house related purchases.
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