Dear Fellow T&E practitioners,
I wonder if anyone can assist me with a declaration of trust that I have received.
The trust declaration is in favour of the legal owner’s two adult children. Per the declaration, her son is entitled to 100% of the rental income if the property is rented. however, each of the three of the legal owner and her two beneficially entitled children are equally responsible for the maintenance of the property. Each of the two beneficial owners are entitled to half the sales proceeds each on a sale of the property.
Is this a valid declaration of trust or is it not legally sound due to the differing entitlements to income and capital and also the fact that the beneficiary with no right to rental income is still responsible for maintenance.
I would be grateful to hear what others think.
Thank you.