Can my parents and I revoke a trust

[mobile]

My parents and I brought a property as joint tentants. After 2 years we had a trust drawn up which moved to tentants in common, 20% to me 80% to them as joint tentants. We didn't logde anything with the land registry.

We would like to revoke the trust and go back to being joint tentants, any idea of how we should do this. Can we just sign a trust ourselves saying we revoke the earlier trust?

Or could we amend the ownership so its 50:50, again I guess this would need a new trust drawn up. Are there any tax implications of doing either, I (along with my wife who isn't on the deed) live with my parents and we share the bills etc.

I would like some detailed advice so please feel free to private message me if you do offer consultantions.

[pawncob]

The ownership is still 50/50, and you're still joint tenants, unless you've notified the L.R. otherwise.

[mobile]

Hi

Not notified LR but we have a declaration of trust which states we have split the property 20 - 80, I own 20 my parents own 80. Is this not valid.

[maths]

Notification to LR is not necessary because of changes in underlying beneficial interests.

Changes in such interests can be made by a declaration of trust including revoking earlier made such declarations.

It appears that you each may qualify for private residence relief regarding any transfers.

SDLT may be in point if mortgages are involved.

[mobile]

There are no mortgages involved.

Could we just sign the DOT amending the underlying beneficial interests ourselves or would we need a lawyer to do it. Are there any specific requirements to make a declaration of trust valid?

[pawncob]

@maths:
I think LR still insist on Form A being completed to sever a joint tenancy. https://www.gov.uk/joint-property-owner ... -in-common

[mobile]

Another question - if I do increase my share of the property would this be treated as a gift from my parents? If so, would this be considered a gift with reservation and would it therefore remain as part of their estate, could I do anything to mitigate this?

[maths]

Normally on the acquisition of an interest in property and registration of legal title in the names of more than one person, LR will itself register a Form A restriction.

This could be checked with LR Proprietorship Register.

The initial transfer from joint tenants to tenants in common would constitute a gift with reservation for IHT purposes.

Similarly on the proposed subsequent transfer.

[mobile]

That makes it insanely complex; the gift has gone from me to my parents and back to me. If we revoke the trust doesn't that mean the original transfer no long exists and we go back to our orginal position?

Is there anyway we can make this a gift without reservation?