Transfer of property

Trusts Discussion
1

Hi all,
In regards to, Hopes v Burton [2022] EWHC 2770 (Ch)
Apparently the trust was a flexible appoointment trust, but, i will try to explain why it does not sound like a flexible trust .

Long story short, 4 individually named beneficiaries, with 25% each in the funds, with possible discretionary beneficiaries, these are not named individually.
10 yrs ago the trustees purchased a property, which was not in the estate, or any trust, for 1 of the named beneficiarys, the beneficiarys funds was used, treated as an enhancement for that beneficiary, occupation is rent free, with funds used for maintenance and all replacements if needed, occupation is including their spouse and children.

Recently the trustees retired, and appointed replacement trustees,
The new trustees have recently transferred the property to the beneficiary in occupation,
The trustees have transferred the property, using the TR1 form, so the beneficiary is now the sole owner of the property.
The mother of the beneficiary, is also a beneficiary, individually named, the trustees asked the mother, to relinquish 3/4 of he interest, the reason for this was for payment of taxes, to aid the trustees, to carry out the transfer for the property,
The mother has been transferred £100,000 by the trustees,also, the property value is £450,00, initial purchase was £320000, also £96,000 in funds.
The mother had a fund value of £452,000,
Transfer house and 100,000, leaves £348,000
Presumably the 348,000 is for tax.
Now.the trust being flexible appointment,
Who is looking after possible discretionary beneficiaries interests, there is also another 2 individually named beneficiaries. There was no consulting, or written confirmation or signed agreements, effectively to split the trust in half.
There is no deed to show anything regarding the above.

How can there be any discretionary beneficiaries,
I thought that discretionary beneficiaries had a voice as such, The transfer that i mentioned is to end both of the beneficiaries intitlements within this trust…
the beneficiaries who Recently benefitted by the transfer, surely this transfer reduces the remaindermen interest…

Doesnt sound legal at all…

2

I have read this question twice, and I must confess it is totally confusing.

I do not know what your role is, but I would strongly advise that you make an appointment to see a solicitor, who is preferably a member of STEP and bring with you as much documentation about the trust as you possibly can. Questions like this are not really suitable for this forum which I believe is principally there for the use of professionals who are members of STEP.

Patrick Moroney

3

Amended post, sorry about that,
We did appoint a solicitor, we apposed the the resetting of the deeds, due to the trustees abusing their position and discretionary powers, by controlling the paper trails and first point of receiving information, evening though had no jurisdiction for the policy, our solicitor was paid for this,
£30,000 later we were told by the judge that the case is for the resetting of the deeds, our argument was based on the fact that the trustees had no legal authority in the first place, all proven by the statements that we had from the original policy trustees, stating that hey were never trustees, never retired if they were trustees, never appointed replacement trustees and never heard of the policy…
All documents in the bundle do not correspond with dates that the policy was appointed tonthe trustees, as well as the assignment of the policy…
So hopefully you can understand now, as to why i ask questions, hopefully answered to guide me in a certain direction, all im asking for is a little guidance
I have to try all routes…
On a brighter note,
I wish All the people within this group
A Happy New Year, and life treats you well.

Jai