Trust Deeds in property's

[pin]

hello all

i am trying to get as much information as possible with regards to making a" trust deed" linked to properties that are owned. could someone help with the basic nuts & bolts of how it works? tax implications? pros & cons of the set up, and general feelings, of anyone who knows that has set up such a programme.

i have tried to research as much as possible but an drawing a blank. i did however find a small mentioning in one of the threads but not what i was looking for.

thanks for you time

[Mortitia]

I have no idea what you mean. Just describe in plain English what you are trying to do?

Mortitia

[Trenners]

I have no idea what you mean. Just describe in plain English what you are trying to do?

Mortitia

If a property is initially purchased as "tenants in common" rather than "jointly" between 2 or more people ... then a deed of trust can be established so that they can choose how the percentages of ownership are allocated.

By default the property is deemed to be owned in equal portions (eg: 50/50 for 2 people or 33 / 33 / 33 for 3 people etc).

However- mainly for tax purposes - a deed of trust can be established between all tenants in common and the percentages of ownership can then be varied within the deed. (eg: Husband owns 10% and wife allocated 90%).

This is tax efficient as (in the above example) 90% of all income and expenditure is allocated to the wife and only 10% is allocated to the husband. If the husband is a 40% tax payer (and the wife is not) then you can see why this would be a wise thing to do.

Regarding trust deed documents - I am sure you can buy a template online - just use google to find one !

Good luck,

Mark