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Tenants in common on a deed of trust

6 replies

Volterra · 08/05/2022 06:49

Whilst I am waiting for a reply from my solicitor could anyone help me with this please ?

4 siblings have a deed of trust where they are 'beneficial tenants in common' and have equal shares. Two are trustees . The Deed of Trust not regisrerd with land registry but all 4 signed it and are obviously aware of its existence. The title is held by the 2 trustees including the one who died.

2 probate solicitors have seen all the documentation and said that the whole value of the property will go into the estate of the person who died for inheritanxe tax purposes as co trustee and confirmed that the beneficiaries of the deceased will get a quarter of sale proceeds should the house be sold.

Conveyancer dealing with house sale who I think is a trainee has said to the now sole trustee that there is a problem as the Deed not register with Land registry and there is nothing in it to say what happens in the event of the death of a beneficiary aa has happened so the sale proceeds are to be split 3 ways between the the remaining 3 living beneficiaries.

My understanding is although not directly spelled out by the probate solicitors thst the reason the Deed of Trust doesn't specify what happens in the event of the death of one or more of the beneficiaries pre the sale of the property is because the Deedx says tenants in common which in itself has a legal meaning that says what occurs in the event of the death of the beneficiaries is their share goes to the people they have put in their will and does not ger redistributed amongst the 3 suruvung beneficiaries.

I also understand that the Deed not being registered against the Title dies not mean it is invalid.

Whilst j am waiting for my solicitor to come back to me would someone mind commenting on the above as to whether I have got the wrong end of the stick please ? Sorry this is long and thanks very much.

OP posts:
Collaborate · 09/05/2022 12:24

I'm not a probate lawyer, but it doesn't sound right to me that the deceased only has a quarter share but for IHT purposes tax is payable on the whole.

Volterra · 09/05/2022 14:32

Thank you. I did ring the HMRC and they did appear to confirm that.

My major concern currently is whether the Deed is valid if not registered on the Land Registry and whether the quarter share died with my parent. Solicitor away from office but is coming back to me later in the week.

OP posts:
MrsBertBibby · 09/05/2022 14:36

Each 1/4 passes into the estate of the dead beneficiary. I think your understanding is probably more correct than that of the ?trainee?.

What is the trainee's job title? Is it on the firm website? It should be spelt out in the client care letter.

MrsBertBibby · 09/05/2022 14:38

And yes, a properly executed deed of trust is binding even if not registered, esp as between the beneficiaries/trustees.

Volterra · 09/05/2022 15:06

Thank you very much MrsBertBibberty. The client care letter will have gone to another family member which I have no access to but a name on another letter I have seen saying
combined with Google is fairly informative!

OP posts:
Volterra · 09/05/2022 16:53

Apologies for getting your name wrong.

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