Life Interest - Land Registry Forms

NaughtyComputer

I need some help of how to complete the Land Registry (LR) documents as the executor of my father Will. Help please!

My parents owned their house as tenants in common (50/50), and when my father died his Will had a section, Life Interest. 

• I give a life interest in my 50% share of my property at [property address] to my wife, [wife's name]
• Upon the death of my wife or if the life interest ceases then I give my 50% share of the property at [property address] to be divided 25% each between [daughter] and my [son]

I believe I therefore need to transfer my father 50% share of the property into trust between me and my brother.

I am in serious doubt on, if and how to reference, the Will Trust / Life Interest in the TR1 Form. I have seen a number of ways of claiming this in various posts but need to find the correct way in this instance.

After a lot of reading I think the following are the correct steps and options I need to complete. Am I correct? 

A LR DJP needs to be completed and submitted to remove my father’s name from the register.

The LR AP1 needs to be completed and submitted (with ID3 forms)

The LR TR1 needs to be completed and submitted

If and how to reference the Trust in section 5 and/or section 10 is the grey area for me. 

Thanks in advance.

RAS

Your father's will created an IPDI trust which needs to be registered with HMRC. You mother is now the sole beneficial owner and it is appropriate but not essential for her to register a Form A restriction preventing the property being sold without the permission of yourself and your sibling. 

Do not alter the ownership. That has various adverse affects on yourself and your sibling, lost FTB status, additional SDLT charges, CGT liabilities and potential risks if you divorce, are made bankrupt or claim benefits. 

Please don't DIY this unless you fully understand what you need to do.

NaughtyComputer

Thank you for your advice.

poseidon1

NaughtyComputer said:

I need some help of how to complete the Land Registry (LR) documents as the executor of my father Will. Help please!

My parents owned their house as tenants in common (50/50), and when my father died his Will had a section, Life Interest. 

• I give a life interest in my 50% share of my property at [property address] to my wife, [wife's name]
• Upon the death of my wife or if the life interest ceases then I give my 50% share of the property at [property address] to be divided 25% each between [daughter] and my [son]

I believe I therefore need to transfer my father 50% share of the property into trust between me and my brother.

I am in serious doubt on, if and how to reference, the Will Trust / Life Interest in the TR1 Form. I have seen a number of ways of claiming this in various posts but need to find the correct way in this instance.

After a lot of reading I think the following are the correct steps and options I need to complete. Am I correct? 

A LR DJP needs to be completed and submitted to remove my father’s name from the register.

The LR AP1 needs to be completed and submitted (with ID3 forms)

The LR TR1 needs to be completed and submitted

If and how to reference the Trust in section 5 and/or section 10 is the grey area for me. 

Thanks in advance.

I confirm you  and your brother should and must register the property as trustees of your father's will trust.

Your mother remains sole beneficial owner of the property by virtue of her 50% share and her rights under the terms of the trust.

As such, you and your brother holding legal title of the property as trustees does not  in any way confer any beneficial rights to you both  (whilst mother is alive) and therefore there is no danger of losing FTB status or being subject to 2nd property SDLT when acquiring your own homes in future.

 Its a fairly common misconception that property ownership as trustee in these circumstances can complicate a trustee's personal SDLT exposure, but usually this is dispelled after taking appropriate legal advice. 

As  for the Form A restriction this would be an additional safeguard to ensure there are no future dealings in the property without consent of all legal owners.

In the circumstances I  would reccomend you get a solicitor to handle both your registration as trustee legal owners as well as the Form A restriction.

As advised by Ras, you also have  HMRC trust registration requirements, with potential penalties for failing to do so.