Family Trust and Deed of equitable assignment 20 January at 2:22PM in Deaths, funerals & probate 3 replies 191 views

Stanshall

Hello,

I am currently going through probate forms for my mother. 9 years ago (after the death of her husband) a Family Trust was created with her home placed into Trust with her as Settlor and Life tenant and myself as trustee. She had a will to which I am the executor and (apart from a cash gift to her grandchild) sole benifciary. The property register states that she is the registered owner of the property with the following restriction:

RESTRICTION: No disposition by the proprietors of the registered estate is to be registered unless one or more of them makes a statutory declaration or statement of truth, or their conveyancer gives a certificate, that the disposition is in accordance with a Deed of Equitable Assignment dated 9 YEARS AGO and made between MY MOTHER and MY MOTHER AND ME or some variation thereof referred to in the declaration, statement or certificate.

Now I'm not sure what this means, particularly the phrase 'Deed of Equitable Assignment'.

I need to get the stage where I can gain probate (the estate is under the Inheritance Tax Threshold) to sell the house and pay off the remaining mortgage upon it.

Can anyone help?

Many thanks.

Marcon

Stanshall said:

Hello,

I am currently going through probate forms for my mother. 9 years ago (after the death of her husband) a Family Trust was created with her home placed into Trust with her as Settlor and Life tenant and myself as trustee. She had a will to which I am the executor and (apart from a cash gift to her grandchild) sole benifciary. The property register states that she is the registered owner of the property with the following restriction:

RESTRICTION: No disposition by the proprietors of the registered estate is to be registered unless one or more of them makes a statutory declaration or statement of truth, or their conveyancer gives a certificate, that the disposition is in accordance with a Deed of Equitable Assignment dated 9 YEARS AGO and made between MY MOTHER and MY MOTHER AND ME or some variation thereof referred to in the declaration, statement or certificate.

Now I'm not sure what this means, particularly the phrase 'Deed of Equitable Assignment'.

I need to get the stage where I can gain probate (the estate is under the Inheritance Tax Threshold) to sell the house and pay off the remaining mortgage upon it.

Can anyone help?

Many thanks.

Yes - a solicitor who has sight of all the documents, particularly whatever Deed your mother signed. Without that information, anyone answering here is going to be guessing/making assumptions which may be well and truly wide of the mark.

Keep_pedalling

You definitely need professional advice, this trust has created a whole heap of unnecessary complication, and may have tax implications (CGT rather than IHT). I am rather surprised that it is even possible to put a mortgaged property into trust. 

Marcon

Keep_pedalling said:

You definitely need professional advice, this trust has created a whole heap of unnecessary complication, and may have tax implications (CGT rather than IHT). 

Without knowing the the exact type of trust or its original purpose, that may or may not be the case.

Keep_pedalling said: I am rather surprised that it is even possible to put a mortgaged property into trust. 

It's effectively the equitable interest (rather than the whole interest in the property) which is put in trust. The lender keeps their charge over the property and is paid off first on any sale, and then the trustees get anything over and above that.