Q&As

A and B own real property as beneficial tenants in common in equal shares. B wishes to execute a declaration of trust over B's 50% beneficial interest in favour of B and C (who is not a legal owner). Could the new beneficial interests under the declaration of trust be registered against the legal title?

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Published on LexisPSL on 24/04/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • A and B own real property as beneficial tenants in common in equal shares. B wishes to execute a declaration of trust over B's 50% beneficial interest in favour of B and C (who is not a legal owner). Could the new beneficial interests under the declaration of trust be registered against the legal title?

We have assumed that a restriction has been registered against the legal title held by A and B to reflect the underlying beneficial interests. It is also assumed that the proposed declaration of trust by B over a 50% beneficial interest would be a bare trust in favour of B and C.

A declaration of trust could be executed by a beneficial owner (B) in respect of B's 50% beneficial interest in favour of B and C, but that may be over-complicating the ownership structure, as there would be two levels of trusts; one relating to the legal title and the other relating to B's share of the beneficial i

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