A Query For Land Registry Experts

bubby08

Good Afternoon,

I wonder if someone can help, I have a land registry query which relates to removing a restriction, I have been dealing with Land Registry for some time with regard to this application and they have finally replied with the following response,

In order for your application to proceed in terms of removing the restriction we will require a further statement of truth or statutory declaration by applicant which clearly states on what basis the trust has come to an end and the beneficial interest in the property has passed from applicant to beneficiary (including whether this is by way of a deed or other provision of law, and if so what this is). This is required to satisfy the registrar that the interest protected by the restriction has come to an end, 

I understand the requirement for the statement of truth but it’s the section whether this is by way of a deed.  My question is, how would I go about obtaining a deed relevant to this context?

any help would be greatly appreciated. 

MWT

Not a Land Registry expert, but when you are winding up a trust it is common to do that by creating a new deed to close the trust and distribute the assets. This should be created by your solicitor.

All they are asking you for is an explanation of the basis upon which the trust has been closed, and you should already have this in hand if you are trying to remove the restriction, so it feels like maybe you are dealing with things in the wrong order, or perhaps the trust has not actually been properly closed yet?

bubby08

MWT said:

Not a Land Registry expert, but when you are winding up a trust it is common to do that by creating a new deed to close the trust and distribute the assets. This should be created by your solicitor.

All they are asking you for is an explanation of the basis upon which the trust has been closed, and you should already have this in hand if you are trying to remove the restriction, so it feels like maybe you are dealing with things in the wrong order, or perhaps the trust has not actually been properly closed yet?

Thank you for the reply, in this instance the trust isn’t physical so yes I guess I am asking how to end a trust of which there is no evidence it ever existed. 

Thank you for your advice

CSI_Yorkshire

There must be evidence that the trust existed, otherwise how would it have been accepted by the Land Registry as a legitimate body to create the restriction in the first place.  This isn't a company like the National Trust, it's a legal arrangement - most trusts would not be called "physical".

They're also not asking for a deed, or asking you to end the trust.  If you re-read the question, they are asking "how did the interest in the property pass from applicant to beneficiary".  If your answer was "probate law", there you go.  If your answer was "the trust is wound up and here is the deed", ok.

The trust was protecting someone's interest.  You need to demonstrate that this protection is no longer necessary.

bubby08

Thank you CSI i think you are getting to the crux of it. And it is starting to make sense. I would say I guess the trust was created by a stipulation of the Will. As the Will has been passed through probate the trust which based on what you are saying was created by the Will has ended as a result of probate.  But that being the case, how would I demonstrate that to their satisfaction?

thank you

CSI_Yorkshire

A will can cause a trust to be set up by saying "I leave this thing to be held in trust for the benefit of person X".

The trust then needs to be legally set up by the executors during the distribution of the deceased's estate.  Probate grants the executors the power to do this.

Finishing distributing the estate doesn't close the trust - because the thing still needs to be held for the benefit of person X.

bubby08

And in this instance where the person relinquishes the benefit of the trust or does not use the benefit of the trust or declines it, how can this be demonstrated and information of this provided to LR that satisfies them?

Thank you so much

MWT

bubby08 said:

And in this instance where the person relinquishes the benefit of the trust or does not use the benefit of the trust or declines it, how can this be demonstrated and information of this provided to LR that satisfies them?

It is not necessarily the same answer for each of those possibilities and it might be easier if you simply stated what you are actually trying to do and a little of the time-line...

For instance, a beneficiary of a will is not obliged to accept the inheritance and typically has two options, to either disclaim the inheritance which is evidenced by a signed letter to that effect, or by executing a deed of variation, evidenced by the deed itself.

Both of those should be done within 2 years of the demise if they are to have any effect on the tax position resulting from the change, and both would put the asset back into the estate with the difference being that a disclaimed asset is for the Trustees to redistribute in accordance with the will, but a deed of variation specifically states how the asset is to be distributed.

There are other differences, but that is the main one.

As a result of either of those the trust, if it had been set up but not longer needed would be ended by the trustees...

So we are kind of full circle back to how you have ended up with the trust being set up and registered but now, no longer required...

bubby08

 Ok so it probably would be helpful I explain the situation which has been very time consuming, lengthy and complicated, but I will do my best to explain simply. 

• My grandfather outlined in the Will that a small property be passed to my mother,

• My grandfather died well over a decade ago and for various reasons which are lengthy the it has only been recently that probate has been granted and I became the executor of the Will. 

• However the final hurdle in this process seems to be a restriction registered on the property which implies the property has to be left to my mother.

• My mother again for various reasons does not want to inherit the property which is in disrepair and would has in affect given it to me. 

 

The, extract in the original post is from the latest update from land registry in our attempt to have this restriction removed. As I said I do not know other than a statement of truth from my mother which has already been provided, what other evidence they are asking for to confirm the trust has been ended.

 I hope this provides the necessary context for you guys.
And thanks again, 

silvercar

bubby08 said:

 Ok so it probably would be helpful I explain the situation which has been very time consuming, lengthy and complicated, but I will do my best to explain simply. 

• My grandfather outlined in the Will that a small property be passed to my mother,

• My grandfather died well over a decade ago and for various reasons which are lengthy the it has only been recently that probate has been granted and I became the executor of the Will. 

• However the final hurdle in this process seems to be a restriction registered on the property which implies the property has to be left to my mother.

• My mother again for various reasons does not want to inherit the property which is in disrepair and would has in affect given it to me. 

 

The, extract in the original post is from the latest update from land registry in our attempt to have this restriction removed. As I said I do not know other than a statement of truth from my mother which has already been provided, what other evidence they are asking for to confirm the trust has been ended.

 I hope this provides the necessary context for you guys.
And thanks again, 

Anyone can refuse an inheritance. That would mean that your mother effectively says "thanks, but no thanks" and the property then follows whatever your grandfather said in his will about the residual estate. Does your mother have siblings?

The other option is for your mother to inherit the property and immediately gift it to you. She could do this by a deed. My understanding is that this is written statement that has written on it that it is executed as a deed and witnessed.

MWT

bubby08 said:

• My grandfather outlined in the Will that a small property be passed to my mother,

• My grandfather died well over a decade ago and for various reasons which are lengthy the it has only been recently that probate has been granted and I became the executor of the Will. 

• However the final hurdle in this process seems to be a restriction registered on the property which implies the property has to be left to my mother.

• My mother again for various reasons does not want to inherit the property which is in disrepair and would has in affect given it to me. 

I assume your mother did not seek to execute a deed of variation within two years of his demise? (you don't have to wait for probate to do this).

So that just leaves a signed letter from her disclaiming the inheritance, but she cannot direct how the property is to be disposed, that would have to be in accordance with the will.

So if the will leaves the residue of his estate to you, then after any other bequests it is yours, otherwise you have to follow the distribution as per the will.

The evidence you need to give the Land Registry would be her letter disclaiming the inheritance and the Grant of Probate as far as I can see.

Exactly who gets the house now is down to the will though, not your mother...

Depending on any other complexities, as the Executor and potential beneficiary it would probably make sense to take legal advice given how long it has been since his demise...