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Trust and real property

Trust and real property

Postby kachibibi » Tue Feb 17, 2015 10:04 am

If a real property is now UNDER THE NAME of the husband. Does that also imply he has not done any trust-related thing about the property? Say, if the husband has already entrusted the property to a trustee for him to look after the property in the interest of the beneficiary-the wife, that means the legal ownership is already transferred to this trustee (should be now UNDER THE TRUSTEE'S NAME). And hence the husband has no ownership anymore in this property. So, UNDER THE HUSBAND'S NAME probably suggests that he still has the legal ownership and has not transferred the property to any trustee yet. Am I correct?
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Re: Trust and real property

Postby theycantdothat » Tue Feb 17, 2015 10:27 am

It is quite possible for the sole owner of a property to declare a trust without transferring the property to trustees.
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Re: Trust and real property

Postby atticus » Tue Feb 17, 2015 10:33 am

What this means is that H has full power to sell the legal title to the property.

There may be trusts behind that, but these are no business of the purchaser. H, as trustee, has fiduciary obligations to account to the beneficiaries of the trust. Their interest is now in the sale proceeds.
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Re: Trust and real property

Postby dls » Tue Feb 17, 2015 10:54 am

declarations of trust come in many forms.
They can range form an implied understanding between family members evidenced only in the way the way the parties act, with no formality of real world documentary evidence at all, to arrangements which have all the deeds and none of the reality - typically tax saving arrangements.

They will take hundreds of different forms in between.
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Re: Trust and real property

Postby kachibibi » Wed Feb 18, 2015 10:07 am

It is quite possible for the sole owner of a property to declare a trust without transferring the property to trustees.

There may be trusts behind that, but these are no business of the purchaser.

<< if I am the husband and I make a trust--a trustor, in whatever forms as suggested by dls, I need to have a trustee who is another individual anyway? If not, what is the point of forming a trust? I make a trust and I assume the role as a trustor and a trustee as well?
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Re: Trust and real property

Postby dls » Wed Feb 18, 2015 10:33 am

I once set up a trust with a deed into H's name, but the trust gave W the right, at any time, to be appointed or appoint, another as co-trustee.

HMLR were persuaded to add the TiC restriction.
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