Selling a property in trust

MartinW6

Hi all.

My late father passed in 2014 and left his share in a trust for me.

We have a buyer and we're about to exchange, but I wondered - does the trust need to be dissolved before the house can be sold?  If not, what happens to the trust once the property is sold?

Mant thanks.

theartfullodger

Do you have a copy of a specific trust set up for this?  Who are the trustees?

Was probate granted?

Anybody else likely to dispute matters?

MartinW6

I do have copies, yes.  My mother and my aunt are executors/trustees, with me as a backup if neither are willing to act.

Probate was granted and I have the certificate.

No-one is likely to dispute anything.

Keep_pedalling

Who owned the other share? If this was his wife and she was given a life interest but has now died then the trust will have ended on her death.

MartinW6

My mother, who now lives with us, owns the other share.  And yes, it's lifetime interest (and yes, she wants to sell too).

Keep_pedalling

MartinW6 said:

My mother, who now lives with us, owns the other share.  And yes, it's lifetime interest (and yes, she wants to sell too).

In which case depending on the wording the will the trust my still apply to the capital and your mother may be entitled to any income earned on it. If she does not need or want this then the trust could be wound up early but she should take professional advice.

MartinW6

The wording states my father's beneficial interest goes to myself.

SDLT_Geek

MartinW6 said:

The wording states my father's beneficial interest goes to myself.

But subject to your mother’s life interest?

MartinW6

Yes.

My mother and I both want to sell the house.

theartfullodger

Were mum & dad - as far as this property is concerned - joint tenants or tenants in common(**)  - or was there some other agreed documented agreement regarding the shares of the property between them (eg 50:50 or 25:75 or whatever), please??

Who is shown on land registry deeds as the owner or owners, please??

** see CaB 
https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/buying-a-home/

""" If you buy your property with someone else, you can choose to do this in one of two ways, as either:

• beneficial joint tenants, or
• tenants in common.

This is the case whether you own the freehold or leasehold of the property.

If you are thinking about buying a property with someone else, you should get legal advice on the best type of ownership for you.

Beneficial joint tenants

If you own your property as a beneficial joint tenant, this means that it belongs to you and the other owner(s) jointly. You can't re-mortgage or sell the property without the agreement of all the other owner(s). However if there is a dispute, an owner can apply for a court order.

As a beneficial joint tenant, you don't own specific shares in the property and you can't give away a share of the property in a will. If you die, your interest in the property passes automatically to the other owner(s).

Tenants in common

If you own your property as tenants in common, this means that it belongs to you and the other owner(s)jointly, but that you all also own a specific share of its value. It is up to you to decide how much each share will be.

You can give away, sell or mortgage your share. If you die, your share of the property does not pass automatically to the other owner(s). You can leave your share to whoever you like in your will.

In England and Wales, for more information about owning your property jointly, see the GOV.UK website at www.gov.uk. """"

MartinW6

Mum and Dad were tenants in common.

My mother and I are shown as the owners on the title deeds.