Reply To: 2nd home or not?

#164365
nick dearnley
Participant

It sounds to me that the solicitor is saying the father is the legal owner but that he holds the property on trust for his son.  But can they have it both ways?  Can it be not the son's for insolvency purposes but also not be the father's?  The fact that the son intends to have it transferred back at some future point is interesting. 

I don't think it matters that the son gets the rental income – it would matter if the father got it, obviously.  What is important from your point of view is whether the father owns it, and I would suggest that the reg 2 definition of 'owner' comes into play – if he can dispose of it, it's his.  If it is on trust for his son, he maybe cannot and it doesn't count.

I would ask for more information on what the understanding is between them, so you can see whether a trust was created.  It mght not be in writing, but both should have the same understanding of the arrangement.