Lifetime Isa

Airsoftuk

Bit of a tricky one that I cant get answer to.
My daughter inherited some money, we set up a bear trust for her and bought a house with the money which we still run, she has paid into a lifetime isa for a few years and now ready to buy her own house, the question is she a first time buyer? can she use the lifetime isa or not.
Thanks

luci

https://forums.moneysavingexpert.com/discussion/6685711/lifetime-isa

Is the house in her name?

eskbanker

In whose name is the existing house?

If she's at least in her twenties, what's the end point of the trust arrangement?

DRS1

There is a discussion on here which may be relevant (if she does not have legal title to the house)

Should he 'risk' opening a Santander Home Saver? — MoneySavingExpert Forum

Presumably from what you say you are treating the bare trust as still ongoing even though your daughter is presumably over 18? Shouldn't you have transferred legal title to the house to her when she turned 18? Maybe she didn't ask for it?

Airsoftuk

Her name is not on land registry for the property

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82159321#Comment_82159321

Did you obtain formal legal advice, e.g. from a solicitor qualified to deal with trusts, before using her money to buy a property that's owned by someone else?

Airsoftuk

https://forums.moneysavingexpert.com/discussion/comment/82159329#Comment_82159329

Yes, The solicitor who did it says she cant use the LISA

Airsoftuk

https://forums.moneysavingexpert.com/discussion/comment/82159280#Comment_82159280

https://forums.moneysavingexpert.com/discussion/comment/82159280#Comment_82159280

She doesn't want to take over yet so we carryon running for her.

Airsoftuk

Its in our names (parents), she's not interested in taking it over at the moment so we will carryon running it

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82159348#Comment_82159348

The solicitor will obviously know more about exactly how the trust was set up, and has presumably therefore offered an informed and qualified view about whether it constitutes her falling foul of LISA first time buyer provisions about having a legal interest in property, but that would obviously beg the question of why she then started funding a LISA anyway?

DRS1

Posts on the thread I linked up above suggest that if she only has a beneficial interest in the current house then she is not banned from having a LISA. It doesn't sound right to me but ….what do I know.

If it was a bare trust created when she was under 18 then when she got to 18 she became absolutely entitled to the property and can demand it is transferred into her name but it sounds like it might be convenient that she hasn't done that.