I have been asked by someone who is currently in prison on remand if he can put his house into a trust. Do the GROB rules still apply even though he is not physically occupying the property? Many thanks!
Proceeds of crime would be one of my concerns.
He can but remember that the GROB rules come into operation if the reservation comes into existence at any time within 7 years of his death and that the reservation need not be continuous but can arise and terminate (nightmare) from time to time. That said if and for as long as he is de facto unable to occupy the property prevents a reservation arising immediately but what will he do if he is released? This pre-supposes that the trust in contemplation does not of itself constitute a reservation by its terms alone. Trusts to defeat creditors may be ineffective.
PRR for CGT on the disposal into trust may be restricted:s223(3) TCGA 1992.
Karl makes a good point. There is confiscatory criminal law which allows trust property to be frozen and/or confiscated and even if it is not itself proceeds of crime. See tainted gifts under ss77 and 78 POCA 2002.
Jack Harper
There is mo reason why someone who is on remand or even if convicted cannot alienate his/her property. Hence, transferring property on trust by such a person is certainly possible.
Can’t immediately find the authority but from memory it appears in one of the Criminal Justices Acts.
Malcolm Finney
Forfeiture Act 1870 s 8 “Convict disabled to sue for or to alienate property, &c.”
No action at law or suit in equity for the recovery of any property, debt, or damage whatsoever shall be brought by any convict against any person during the time while he shall be subject to the operation of this Act; and every convict shall be incapable, during such time as aforesaid, of alienating or charging any property, or of making any contract, save as herein-after provided.
Criminal Justice Act 1948
s. 70 Amendments of Forfeiture Act, 1870.
"(1)Sections six to thirty of the [33 & 34 Vict. c. 23.] Forfeiture Act, 1870 (which relate to the administration of the property of convicts) shall cease to have effect."
Malcolm Finney