Reply To: Previous Property Placed Into A Trust

#286053
Peter Barker
Keymaster

The legal term “owner” as defined in Reg 2 is only relevant to the question of liability to make payments (Regs 12 and 9).

If she is still the legal owner, or one of the legal owners (depends whether she is a trustee herself) that in itself doesn’t prevent her from claiming HB for another property elsewhere. If you check the land registry you might find that legal ownership has been transferred to trustees, or you might find that she remains registered as the legal owner but now as trustee for the benefit of her grandson. Doesn’t matter – it’s the beneficial interest in the property we are concerned with here.

The sole issue is capital. She no longer has the beneficial interest in the property – that belongs to the beneficiary under the trust. That just leaves the question whether she disposed of the beneficial interest in order to preserve / increase / obtain HB