Q&As

An individual co-owns property with their mother by virtue of a trust. The mother is now bankrupt. The mother's beneficial title to the relevant property therefore vests in her trustee in bankruptcy. The individual wishes to acquire their mother's beneficial title from the trustee in bankruptcy and they are agreeable to that arrangement. However, the individual also needs the legal title to be transferred to them to satisfy their lender. Can the trustee transfer the legal title by relying on the provisions in section 283(4) of the Insolvency Act 1986 granting them the power to call for such a transfer as the beneficial owner? The individual, as co-trustee and beneficiary, would consent to such an arrangement.

read titleRead full title
Published on LexisPSL on 20/05/2020

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

  • An individual co-owns property with their mother by virtue of a trust. The mother is now bankrupt. The mother's beneficial title to the relevant property therefore vests in her trustee in bankruptcy. The individual wishes to acquire their mother's beneficial title from the trustee in bankruptcy and they are agreeable to that arrangement. However, the individual also needs the legal title to be transferred to them to satisfy their lender. Can the trustee transfer the legal title by relying on the provisions in section 283(4) of the Insolvency Act 1986 granting them the power to call for such a transfer as the beneficial owner? The individual, as co-trustee and beneficiary, would consent to such an arrangement.

For the purpose of this Q&A we have assumed that the land is registered and that both parties are registered as joint owners on the legal title.

Section 283 of the Insolvency Act 1986 (IA 1986) defines the bankrupt's estate as any property which either belonged to the bankrupt or in which the bankrupt had an interest at the date the bankruptcy order was made.

IA 1986, s 436 provides a wide definition of property as:

‘money, goods, things in action, land and every description of property wherever situated and also obligations and every description of interest, whether present or future or vested or contingent, arising out of, or incidental to, property.’

IA 1986, s 283(3)(a), however, specifically excludes property owned by the bankrupt on trust.

Normally when a bankruptcy order in made, the bankrupt's property vests in the Official Receiver, however pro

Related documents:

Popular documents