TRS and non-exempt co-ownership property trusts

Trusts Discussion
1

Hi all

HMRC indicates in TRSM23020 (Alice and Bob example) that where one of a couple dies and establishes an IPDI, in addition to the express will trust created there is also a non-exempt co-ownership property trust due to the fact that the trustees and beneficiaries of the property become different people.

We have a situation where a sole legal owner died and established an IPDI in their will. Applying HMRC’s guidance, would there be a separate registrable property trust due to the fact that the legal title (owned by the deceased) differs from the trustees and beneficiaries in the will, or would this just not be a co-ownership trust at all within HMRC’s reasoning?

Thanks in advance.

2

That would just be a single (will) trust as the legal title will devolve to the trustees of the will trust who will hold on behalf of the beneficiaries.