Declaration Of Trust
A Declaration of Trust can also be used, where property is owned by one person, the person on the title, but lives with another (or others) who are not on the Title Deeds, then that person could declare a Trust, stating that he holds the property for himself and the other equally as tenant in common or in any other proportion. It may in fact be that the person on title holds the property for others and does not live there themselves, say you buy a property for parents or for children. The use of a Trust in these circumstances can assist Capital Gains Tax mitigation utilising main residence relief as well as protecting the assets for future generations.
It may in fact be that the person on title holds the property for others and does not live there themselves, say you buy a property for parents or for children. The use of a Trust in these circumstances can assist Capital Gains Tax mitigation utilising main residence relief as well as protecting the assets for future generations.
As it is a ‘Discretionary Trust’, the Trustees decide who and by how much the beneficiaries’ benefit – if at all. Just because they are listed as a ‘potential beneficiary’ does not mean they are entitled or have a right to anything. This is the basis of the planning and protection offered by a Discretionary Trust.
