Trustee, beneficiary, and stamp duty help

Crazyworldwelivein

Please can someone help me because I just cannot seem to get answers anywhere and solicitors don’t seem willing to help.
my husband was left as a trustee and executor around 6 years ago for his fathers Will. He is the eventual beneficiary of his house and deeds are in my husbands name. He cannot benefit in anyway as someone else is allowed to live there rent free for the rest of their lives. They must pay all bills and insure and maintain the property. Basically he will never benefit f I’m the sale of the house. we are selling our house and moving, but I’m concerned about second property stamp duty. Would he need pay second home stamp duty even though he’s never really going to benefit from the house. Thank you in advance 

Keep_pedalling

If you are selling you home to buy another then the additional SDLT does not apply.

The biq question however is why are the deeds in your husband’s name when legal ownership is the trust?

DE_612183

Crazyworldwelivein said:

Please can someone help me because I just cannot seem to get answers anywhere and solicitors don’t seem willing to help.
my husband was left as a trustee and executor around 6 years ago for his fathers Will. He is the eventual beneficiary of his house and deeds are in my husbands name. He cannot benefit in anyway as someone else is allowed to live there rent free for the rest of their lives. They must pay all bills and insure and maintain the property. Basically he will never benefit f I’m the sale of the house. we are selling our house and moving, but I’m concerned about second property stamp duty. Would he need pay second home stamp duty even though he’s never really going to benefit from the house. Thank you in advance 

This bit is confusing.....

Is he the beneficiary or not?

Keep_pedalling

DE_612183 said:

Crazyworldwelivein said:

Please can someone help me because I just cannot seem to get answers anywhere and solicitors don’t seem willing to help.
my husband was left as a trustee and executor around 6 years ago for his fathers Will. He is the eventual beneficiary of his house and deeds are in my husbands name. He cannot benefit in anyway as someone else is allowed to live there rent free for the rest of their lives. They must pay all bills and insure and maintain the property. Basically he will never benefit f I’m the sale of the house. we are selling our house and moving, but I’m concerned about second property stamp duty. Would he need pay second home stamp duty even though he’s never really going to benefit from the house. Thank you in advance 

This bit is confusing.....

Is he the beneficiary or not?

The will set up an immediate post death interest trust. The occupier is the current beneficial owner, the trust is the legal owner and the OP’s husband is the remaindeman who inherits on the death of the occupant. 

Crazyworldwelivein

Keep_pedalling said:

If you are selling you home to buy another then the additional SDLT does not apply.

The biq question however is why are the deeds in your husband’s name when legal ownership is the trust?

I believe because the house was left to him to sale but he’s not allowed to sale it while the other person lives there. He cannot benefit  and must hold it on trust until they stop using it for main residence (very unlikely). Is that correct ? Sorry I might have this wrong. Whose name should house deed be in its in trust ? Thanks 

poseidon1

Crazyworldwelivein said:

Please can someone help me because I just cannot seem to get answers anywhere and solicitors don’t seem willing to help.
my husband was left as a trustee and executor around 6 years ago for his fathers Will. He is the eventual beneficiary of his house and deeds are in my husbands name. He cannot benefit in anyway as someone else is allowed to live there rent free for the rest of their lives. They must pay all bills and insure and maintain the property. Basically he will never benefit f I’m the sale of the house. we are selling our house and moving, but I’m concerned about second property stamp duty. Would he need pay second home stamp duty even though he’s never really going to benefit from the house. Thank you in advance 

Your husband's status as co legal owner of the property is that of trustee ( during his father's lifetime).

As indicated by others posting here, legal ownership In a trustee capacity does not equate to beneficial ownership for the purposes of 2nd property SDLT.

 Your husband cannot acquire beneficial ownership whilst his father is alive and occupying the 'trust' property, so in the circumstances you outlined your husband is not liable to 2nd property SDLT when replacing your current residence.

Hopefully, your conveyancing solicitor should be fully aware of this distinction when the time comes.

Incidentally check whether your husband has placed the trust on HMRC's trust register for income tax and cgt purposes. This requirement was expanded to all trusts in 2022, whether or not they had any exposure to income tax/ cgt, so may not  have been on your husband's compliance radar 6 years ago.

SDLT_Geek

Crazyworldwelivein said:

Please can someone help me because I just cannot seem to get answers anywhere and solicitors don’t seem willing to help.
my husband was left as a trustee and executor around 6 years ago for his fathers Will. He is the eventual beneficiary of his house and deeds are in my husbands name. He cannot benefit in anyway as someone else is allowed to live there rent free for the rest of their lives. They must pay all bills and insure and maintain the property. Basically he will never benefit f I’m the sale of the house. we are selling our house and moving, but I’m concerned about second property stamp duty. Would he need pay second home stamp duty even though he’s never really going to benefit from the house. Thank you in advance 

Is the property you are buying in England, so the relevant stamp duty is stamp duty land tax?

You are selling your existing home and buying another?

If so the extra 5% SDLT should not apply regardless of the structure of ownership of the inherited property.