Settlor - Unregistered Title

Trusts Discussion
1

A Settlor set up a Life Interest Trust over his main residence 10 years ago. The Settlor is not a Trustee.

As the property was unregistered the Trust Deed was stored with the Deeds.

The property will be sold as the Settlor has lost capacity. The Settlor has a registered LPA. The family want the property registered in to the names of the Trustees before sale. The wording in the Trust is as follows:-

“The Settlor declares that she now holds the property specified in the first schedule below on the terms of the following settlement and shall at the request of the Trustees at any time sign any paperwork they require to transfer the legal title to the Trustees.”

My question is can the Attorneys sign the TR1 on behalf of the Settlor registering the property in to the names of the Trustees ?

Many thanks

Cassie Arbour
Rudlings Wakelam

2

On the basis that the attorneys would be undertaking a purely administrative action, it is arguable that they should be able to complete TR1 to effect the transfer of title. However, the settlor has constituted themselves as a trustee of land and s.1 Trustee Delegation Act 1999 will only apply to enable the attorney(s) to exercise a trustee function if the settlor has a qualifying interest in the land.

If s. TDA 1999 applies, then I suggest the attorney(s) can execute the TR1. However, if the settlor does not have a qualifying interest in the land, then it may be appropriate to consult Chancery counsel to identify the best way to proceed

Paul Saunders FCIB TEP

Independent Trust Consultant

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