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Senior Partner
Senior Partner, Solicitor
Category: Law
Satisfied Customers: 13329
Experience:  Solicitor with more than 30 years experience
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I am about to be sued and am making a Declaration of Trust

Customer Question

I am about to be sued and am making a 'Declaration of Trust' in my house to my father. Questions are: should he put this in his will so that it comes back to me should he die or is there another way (some form of document that allows me to rescind the declaration when it is convenient?).

Thanks
Submitted: 4 years ago.
Category: Law
Expert:  Senior Partner replied 4 years ago.
If you make a declaration of trust it is not revocable. However if you do so when you are unable to pay your debts then your creditors can have the gift set aside without difficulty.

You can get your father to give it back or to leave it in his will but there may be inheritance tax implication if it is worth more than £325k.

Customer: replied 4 years ago.

I am not liable for anything at the moment - if I do it now, would there still be a problem?

Expert:  Senior Partner replied 4 years ago.
You say you are not liable but you also said you were about to be sued If you have a valid claim against you or at least a prospectively valid one that you know about, the mere fact there is not judgement will not recent a judgement creditor applying to set the transfer aside.

If you are simply doing this to protect your assets before undertaking the a business or activity that might give rise to personal liability that is different but if the prospective lability has already arisen it is too late probably.

You can try but you need to understand that it may not work.