Property held in trust question

MrSilk

Hi All,

Posting on behalf of a family member.

Properties that form part of a trust, should these be registered in the trustees personal names or are they to be held in the trusts name (e.g. Trust of XXX)?

I've done a land registry search and the properties in question (Totalling over £3m in value) are registered in the trustees personal names and not as a trust specifically. The trustees are selling one of the houses for Approx. £400k less market value which will obviously be a detriment to the 2 beneficiaries, and estate agent has confirmed that they are legal owners(!). Apologies if this is in the wrong section but looking for advice really!

Many thanks in an advance.  

RAS

What sort of trust are you referring to? IPDI trust, discretionary trust.

And regardless of what the EA says (they have only been told the sellers have the right to sell), have you spent £3 getting a copy of the deeds from the Land Registry? Takes a few minutes.

MrSilk

Hi RAS, Thanks for replying.. We actually have no idea what type of trust it is. The father died in 2006 and his second wife was to enjoy (live in) the main property and live of the rental income of the other properties until her death, then it gets passed to the beneficiaries once she has died, which she did in January. 

There was also £1m in investments and cash which hasn't grown in 18 years and we're are being told will be wiped out to pay the inheritance tax.  

Trust documents have been requested but these requests are being ignored by the trustee(s), no statements have been produced either. Yes I have spent the £3 and it's showing all properties in the personal names of the trustees (have been since 2007), one is a retired solicitor and the other is an accountant. 

MrSilk

It sounds like it's an IPDI trust from reading about it online.

RAS

MrSilk said:

Hi RAS, Thanks for replying.. We actually have no idea what type of trust it is. The father died in 2006 and his second wife was to enjoy (live in) the main property and live of the rental income of the other properties until her death, then it gets passed to the beneficiaries once she has died, which she did in January. 

There was also £1m in investments and cash which hasn't grown in 18 years and we're are being told will be wiped out to pay the inheritance tax.  

Trust documents have been requested but these requests are being ignored by the trustee(s), no statements have been produced either. Yes I have spent the £3 and it's showing all properties in the personal names of the trustees (have been since 2007), one is a retired solicitor and the other is an accountant. 

Who do you think the beneficiaries are? Was the property held by SM and the father as joint tenants or tenants in common.? The latter may have resulted in probate being  granted.

MrSilk

The beneficiaries are the two sons going by the will which we have seen, and have a copy of since 2007. it was also provided to us again in January.

It was under the sole name of the father and then it was transferred under the trustees name shortly after his death.

It's my father-in-laws dad's estate, apologies if I didn't mention this before. 

The wife (who already had 3 sons before marriage) was to live in the property until her death then it goes to the beneficiaries, but it's being sold and they've no say in it. Also they have been told by the trustee that the three sons are entitled to a third of the proceeds. The solicitor is questioning this as no where is it mentioned in the will about her sons benefiting from the estate.  

Keep_pedalling

With the amounts involved the beneficiaries should take professional advice.

MrSilk

Yes, legal advice is being received now, many thanks.