When transferring a property into a Trust (Lifetime Settlement) Is a TR1 sufficient to transfer the title to the trustees or is a declaration of trust also required to deal with the beneficial interest. Please could you break down the process.
Lucy Leach
Yes, because the TR1 itself will record that they are holding it on the terms of the trust. There is a specific box for this after joint tenants/tenants in common.
Andrew Goodman
Osborne Clarke LLP
Thanks @andrew.goodman. If property is being transferred into the trust do you still require a monetary deposit to establish the trust ie £10.00 ? Would you only do this if the trust was to contain monetary assets ie cash, investments etc?
Lucy Leach
It’s still common to execute the settlement with a nominal sum but you could just execute the settlement and TR1 simultaneously. I’d prefer the latter for neatness; it avoids the question of what to do with the £10.
Andrew Goodman
Osborne Clarke LLP