How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

hello! my dad foolishly bought into a property with no paperwork,

Customer Question

hello!
my dad foolishly bought into a property with no paperwork, he agreed with a friend he has one third of the property but did not want to be named on the deeds as is unemployed and did not want the tax implications etc. What, if any, documentation can now be drawn up to prove he bought into this house - I am concerned if anything happens to him or his friend, the friend's children get everything...
Thanks!
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

What your father will require is what is know as a declaration of trust. This is a document that the "owners of the property" enter into and it says that the legal owner of the property (I.e his friend) will hold the property on trust for the him and the other owners as the "Beneficial Owners" of the property in what ever percentage they have agreed. Essentially he wont have any legal rights to the property other than the right to his share of the proceeds of sale of the property when it is sold.

A declaration of trust will cost about £250 plus VAT to have a local solicitor draw up.

Only being the beneficial owner does not necessarily save him from Tax implications. He may still have to pay tax on a profits he makes.

Kind regards

AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

Hi Alex,


 


thanks for this, very helpful. I will ask him to arrange this through a local solicitor with the legal owner of the property. Is this paperwork included with documentation such as the will and/or the deeds of the property? In case of death on either side, how would one proceed to ensure that the papers are recognised and dealt with accordingly?


 


Regards,


Katy


 

Expert:  Alex J. replied 3 years ago.
Hi

Thank you.

Ideally you would make sure that the interest is noted in the beneficial owners will. The beneficial interest can then be bequeathed to anyone as if it were an asset.

The paper work should ideally be registered against the title of the property. The solicitor that drafts it will be able to do this for you.

If you contact www.lawsociety.org.uk they will be able to put you in contact with a local solicitor.

Kind regards

AJ

Related Law Questions