Property Deeds

[chrislevy2@aol.com]

A friend is giving his son £200K to buy into his property and live in the 'granny flat' but without his name being on the deeds. I think this is dangerous and wonder if he could be protected by use of trusts. On death the share (33%) is to be divided amongst 3 siblings, by sale of the house.

[Taxbar]

Dear chrisLevy,

I agree the situation can be proetected by use of a trust. It can also be protected by either a declaration of trust recorded by notice or caution at the land registry.

In this situation it appears quite complicated and it may acutally be better for the Father to purchase the granny flat and for a separate title to be granted.

Without knowing the value of the father's estate, it is hard to say whether a trust arrangment could provide any benefit. The trust would actually have to be one where the son makes the trust after receiving the gift from the father.

This is an area that needs good advice and of course more information on the family situation and the father's assets.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants
 
Treen House 72 Park Road,
Prestwich Manchester M25 OFA
Tel: 0161 720 7244
E-mail: sedrate @easynet co.uk