Deed of trust - Can you have 100%/0%

[Sand]

Hi

I was going to organise a deed of trust whereby I have a 1% share and my husband 99%. I was told that you can actually show it as I own 0% and my husband 100%.

The mortgage and title to the land will be jointly owed as tenants in common.

I just want to know if this is possible and any disadvantages.

Thanks

[Mortitia]

I don't get that. A deed of trust is usually used where on person owns the property but a 2nd has 'an interest' in it often expressed as a %. If you both own jointly then surely it is 50/50 unless the deed states otherwise?

Mortitia

[Richlist]

A deed of trust is usually used where on person owns the property but a 2nd has 'an interest' in it often expressed as a %. If you both own jointly then surely it is 50/50 unless the deed states otherwise?

Legal ownership & beneficial ownership are different. Where there are joint legal owners then beneficial ownership is by default 50:50. A declaration of trust can vary the beneficial ownership where the parties want it to be something other than 50:50. Usually its 1:99 for tax avoidance.

[imtiajmeah]

Hi i'm about to buy my first buy2let. I'm a 40% tax earner and my wife is not working. We are thinking of splitting the ownership for tax reasons1:99.

My question is can we have "joint tenants" so if either dies they will getthe others share. Is the deed of trust a different name for “Tenants inCommon”.

Either way what is the best thing we should do?

[Richlist]

My question is can we have "joint tenants" so if either dies they will getthe others share.

Joint Tenants, mainly suits married couples. When one dies the survivor will automatically inherit the other's share.

It may not be suitable if you are not married......and there in lies the problem. We don't know your circumstances. Its about the legal ownership of the property.

Is the deed of trust a different name for "Tenants inCommon".

A deed of trust is about the beneficial ownership.... ie.... who get how much of the income from that property.

Either way what is the best thing we should do?

I don't think you are really going to make a decision based on what a person tells you, who you don't know, from an internet forum. .....and if you aren't, as I suspect is the case, I'm not going to spend lots of time posting an explanation. See a solicitor, who will explain in detail, draw up the documents and charge you £200-£300 for the privilege. Good luck.