Trust of Land

What is it?

• A formalising document which confirms the existence of a verbal trust which was created historically

• References section 53(1)(b) Law of Property Act 1925

• This can mitigate or in some cases completely remove a Capital Gains Tax liability

• This can also in some cases immediately remove the value of a property from a client’s estate for Inheritance Tax purposes.

• Please see our ‘Resources’ below to learn more about trusts of land’

Most Common Uses

• Where parents own and purchased a property for their children to live in, Capital Gains Tax (and possibly Inheritance Tax) can be mitigated

• Where children assisted with the purchase of and therefore own a share of their parents house, Capital Gains Tax (and possibly Inheritance Tax) can be mitigated