Hi
I was just wondering what other legal practitioners are doing in terms of Estates where there is Property and registering it with TRS.
For example, if A + B are the legal and beneficial owners and A dies. C is the Executor but B is the beneficiary of A’s share. Are you registering with TRS because the legal owner at this point is different to the beneficial owner. A + C are now in effect the legal owners and A is the beneficial owner.
Any thoughts welcome.
The first point to bear in mind is that registration it’s not compulsory, unless the personal representatives have not completed the administration after two years have elapsed and are still holding estate in trust. You do not say whether A and B, were holding as beneficial joint tenants or as tenants in common. If the former, then the survivor becomes sole owner of the property and there is no trust involved, if the latter then registration would be necessary if the Restriction A had not been removed after two years have passed, so that the PRs are holding the share of the property for the survivor. If A has given B an interest in possession in the property, then registration should be made once probate has been granted, unless there is an intention of varying the Will in that respect.
Patrick MORONEY
Sorry to disagree with Patrick, but my understanding is that with a tenancy in common, TRS registration is subject to the 90 day registration requirement. The trust of land is a totally separate trust to the estate of the deceased co-owner.
Paul Saunders
independent Trust Consultant
Providing support and advice to fellow professionals
So, from what you say, Paul, it would seem that two registrations are necessary, one for the survivor to do in respect of the property, which he/she is now holding in trust for the estate of the deceased and themself in equal shares, and one for the trustees of the Will, if one assumes that the deceased’s share is to be held in trust for the survivor for life. I know that you have commented in another posting concerning the costs of arranging registration and who bears these, but it seems to me that if I have understood the position correctly, there are double costs involved, all relating to the one half share of the property. Surely, that can’t be right!
Patrick MORONEY
That’s my understanding – each trust needs to be registered.
Technically, as one trust relates to the whole of the property, and the other to just a half share, they relate to different assets.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
My understanding is the same as Paul’s.
However you would have 2 years for the estate registration so would not need registering at the moment.
Rather ridiculous position but that is where we are…