property in trust

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  • #44420
    clongden
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    I would appreciate opinions on the case below whether the property can be disregarded.

    The customer and his partner hold the legal title to a property that was purchased by the customer's sisters for £135,000.00 outright ( no mortgage) . The customer has now provided  a declaration of trust where he and his partner  are Trustess Upon Trust and his sisters are the Trustees. The trust  stipulates that he and his partner hold the legal title for the property and his sisters  hold the equitable title.The Trust details are as below:

    If the property is to be sold then the customer and his partner are required to give 6 months notice to his sisters to obtain written consent.

     The customer has to repay a minimum of £5000.00 annually until the full purchase price of £135000.00 is repaid.

    If the customer defaults on the minimum annual payments then the legal title of the property is to be transferred to his sisters.The equitable title belongs to the sisters until the full purchase price of £135,000.00 has been repaid to the trustees.

    If all parties agree to sell the property before the customer has repaid £135,000.00 to the trustees then the proceeds are to be divided between all parties after deduction of the cost of the sale and the balance left of the purchase price being paid to the trustees.

    Much appreciated Christine

      

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