Land reg update on moving property into trust

[Umar]

Hi

When you move a property into trust, what needs to be notified to the land registry. Is it just the movement of property from the original owner to the trustee?

Example 1:
If I move a property from me, to a discretionary trust for the benefit of my children where I am the trustee, do we change the land registry documents?
i.e. do we do the transfer forms etc.

Example 2:
If I move a property from me, to a discretionary trust for the benefit of my children where my brother is the trustee, do we change the land registry documents?
i.e. do we do the transfer forms etc.

Thank you!

[Lee Young]

The trustees' names should be on the title.

Where there is land in a trust there should be at least two trustees.

So unless the trustees are already the owners of the land then there will be a change required. Trustees should have a restriction on the title as well, and hold as tenants in common, so if they don't, then this change would be required too.

[Umar]

Thanks!

So just to confirm, if I move a residential property into a discretionary trust, and I am the sole trustee, then the land registry do not need notification.

And if I move a residential property into a discretionary trust, with my brother as sole trustee, then the land registry do need notification.
That notification is a normal property transfer form, and doesn't mention anything about the trust.

[AGoodman]

Confirmed - albeit it is not great to have a single trustee - it can cause problems if something happened to them (probate would probably be needed) and on a sale when you should have two trustees.

Trustees should have a restriction on the title as well, and hold as tenants in common, so if they don't, then this change would be required too.

You sure about this? Surely trustees should hold as joint tenants.

[maths]

A lifetime trust is created either by the settlor simply declaring that henceforth he holds the property on trust OR the settlor transfers the property to another trustee(s) to hold on trust.

Where the former is adopted there is no need for notification to LR regarding any change of legal title.

Where the latter is adopted notification to LR is required re the change of legal title.

The trust under either option may be a discretionary trust under which the property is held, for example, for A, B, C and D as discretionary beneficiaries.

If, for example, the property is transferred from say X to Y and Z as trustees of a discretionary trust then Y and Z will hold the legal title as joint tenants.

If, for example, X and the trustees of Y and Z jointly purchase a new property then as co-owners X and Y and Z will hold the legal title as joint tenants. However, X and Y and Z may declare that they hold the legal title for X beneficially as to, say, 40% and the beneficiaries of the trust, of which Y and Z are trustees, as to 60%.