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Deed transferring property on death.

Deed transferring property on death.

Postby shootist » Mon Jan 16, 2017 12:34 pm

Is it legally possible, and viable, for a person who is the beneficial owner not named on the land registry, one of many shareholders in that property, to retain ownership of that share but to arrange (by deed?) that is should be transferred to another individual immediately upon their death. I know that the usual way might be to do this in a will, but assume for the purpose of the exercise that the individual concerned doesn't want to.
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Re: Deed transferring property on death.

Postby theycantdothat » Mon Jan 16, 2017 12:53 pm

Yes. A declaration of trust will do it. It will though be irrevocable, unlike a will which you can (usually) change.
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Re: Deed transferring property on death.

Postby shootist » Mon Jan 16, 2017 3:42 pm

That's most interesting. Thank you. Forgive me if I wait to see some more opinions though, trust law being what it is. The reason for examining this possibility is for the original owner to retain ownership and all that goes with it while he is alive but to be certain of it's disposition when he dies..
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Re: Deed transferring property on death.

Postby dls » Mon Jan 16, 2017 4:47 pm

You shoot a little wide of teh mark.

Such a person has an interest under the existing trust. That is not an interest in the land. Just what rights such a person has is governed by the terms of the trust. The trust can, for example control the assignment of interests. If it respects the fundamental alienability of the share, several hoops may be put in place. A common one may be a right for the other owners first to approve any assignee. another would be to control teh format of any transfer - for example making it subject to having paid any existing sums due to the trust and or the assignee accepting the terms of the trust.
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Re: Deed transferring property on death.

Postby shootist » Mon Jan 16, 2017 6:25 pm

For the purposes of this exercise it may be assumed that there are no obstructive conditions such as allowing other owners first dibs on the share, or pretty much anything else other than the trustees having an obligation to abide by the wishes of any owner wanting to transfer his share to another.
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Re: Deed transferring property on death.

Postby theycantdothat » Mon Jan 16, 2017 9:15 pm

A deed by which the beneficiary declares he holds the interest in trust for himself for life and on his death for the benefit of the other individual is about as certain as you can get. Naturally the certainty depends upon the deed being correct and drafting by a professional is highly recommended. Notice of the deed should be given to the trustees of the land.
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Re: Deed transferring property on death.

Postby atticus » Mon Jan 16, 2017 10:28 pm

The fact that the property has "many shareholders" indicates that there is some complexity to the trust for sale on which the property is held. Is there nothing further that can be said about this?
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Re: Deed transferring property on death.

Postby shootist » Mon Jan 16, 2017 11:24 pm

Yes. The situation was set up against the advice of solicitors by a group that just maintained a majority of idiots who thought they knew better.
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Re: Deed transferring property on death.

Postby dls » Tue Jan 17, 2017 9:05 pm

I am not sure what a 'deed transferring property on death' is. It is a very strange beast. I can see that a trustee faced with such a deed would distrust it severely
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Re: Deed transferring property on death.

Postby theycantdothat » Wed Jan 18, 2017 8:48 am

dls wrote:I am not sure what a 'deed transferring property on death' is.


Strictly there is no such thing. The law requires an assignment of an interest in property to take effect immediately; any assignment which purports to transfer property at a future date is void. The only way to do it is to set up a trust. Once a trust is set up two interests exist: a life interest and a future interest.
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