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: 3774
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

How do I put in trust a building which I own to the benefit

Resolved Question:

How do I put in trust a building which I own to the benefit of the Limited Company who are at present the tenants?
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.

In order to put property in trust for the benefit of another you need to draft a trust deed.

Do you have any more information you can give me?

Kind regards

AJ
Customer: replied 3 years ago.

Thank you for your reply. Iwant to transfer ownership of the building to the tenant with a proviso that if sold the proceeds would go to my chosen charity

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

So to confirm you will remain the legal owner, but the tenant will have the beneficial right to remain in the property and when it is sold the proceeds will go to Charity?

The tenant will not pay any rent?

Kind regards

AJ
Customer: replied 3 years ago.

No. I want to transfer ownership of the property

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

If you transfer legal ownership of the property to the limited company, that will not be a trust arrangement it will be a transfer and you will incur a Stamp Duty Land Tax charge.

What you can do is set up a trust which states the beneficial owner of the proceeds of sale will be a chosen charity and the limited company will have the beneficial right to occupy the property until it is sold.

Who owns the limited company?

Kind regards

AJ
Customer: replied 3 years ago.

The limited company is Longden Arts Ltd a group of artists who use the building as studios and showroom

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Would registering as a charity or forming a charitable trust be an option?

Really if your intention is altruistic then the property should not be given to this company. You need to form a trust with a trust deed that says the property is owned and managed by the trustees for the benefit of the advancement of the arts.

The trustees (of which you can be one) will then be appointed to manage and decide how the assets of the trust are used for the beneficiaries.

Kind regards

AJ
Customer: replied 3 years ago.

Would i need to employ a solicitor to set up a charitable tust?

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

It would be advisable because a trust needs three certainties:
1. Words;
2. Subject Matter;
3. Objects

If you get any of these wrong the trust will fail.

If you go to the Law Society www.lawsociety.org.uk then they can recommend some one local to you with trust expertise that wont be too expensive.

Kind regards

AJ
Alex J. and 2 other Law Specialists are ready to help you
Customer: replied 3 years ago.

Thank you. I would rate your advice as good

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you very much.

Please do not hesitate to contact me if I can assist any further.

Kind regards

AJ