TRUST LAW

[CYNthesys]

This may seem like a realy dumb question, but my head is a bit like mush this morning.

Ive never had any dealings with Trusts, and always thought of them as being express instruments that are only used by the wealthy.

My question is -

If a person charges a property that he owns as security for borrowings but retains title to his property, does that make him a trustee?

[teaboy2]

Re: TRUST LAW

Well this is not my area of law, but i very much doubt one can be a trustee to property they are actual owners off.

Generally a trustee is someone is appointed trustee by the owner to act in the owners and the properties best interest are is not in it for profit.

Though as i said its not my area of law, so others with more knowledge in this area of law may tell you differently.

[CYNthesys]

Re: TRUST LAW

These definitions of trustee state-

Trustee (or the holding of a Trusteeship) is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another.

trustee - a person (or institution) to whom legal title to property is entrusted to use for another's benefit

trustee - a person to whom the legal title to property is entrusted to hold or use for another's benefit

In the case in question it was a 3rd party charge, the deeds were deposited with the lender, but the legal title remained with the owner.

[teaboy2]

Re: TRUST LAW

These definitions of trustee state-

Trustee (or the holding of a Trusteeship) is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another.

trustee - a person (or institution) to whom legal title to property is entrusted to use for another's benefit

trustee - a person to whom the legal title to property is entrusted to hold or use for another's benefit

In the case in question it was a 3rd party charge, the deeds were deposited with the lender, but the legal title remained with the owner.

So the owner of the property was not actually own by the person you were referring to in your original post, but is owned by someone else and the person you originally referred to was a trustee to the property acting on the property owners behalf - Is that correct?

Am i right in assuming that the supposed trustee has used the property he/she is a trustee of as security for a loan in the trustees own name and not in regards to a loan for the trust or owner of the property?

[CYNthesys]

Re: TRUST LAW

To clarify, the freehold owner being the title holder, the mortagor and the guarantor were all one and the same person. The customer/borrower was the owner's business.

As the business (a Ltd Co) had ceased trading the owner/the title holder who was both the mortgagor and the guarantor was deemed to be the principal debtor.

As security for the business borrowings the owner gave a personal guarantee. To support that guarantee he entered into a Legal Mortgage by Owner to secure Customers Account. This was accompanied by the deeds.

It was a fixed charge and liability was limited to approx 13 1/2% of the property's open market value. The property was not registered, neither was the charge.

The lender therfore had a security interest in the property, as did the owner, and title remained with the owner.

[SpringerSpaniel]

Re: TRUST LAW

Trusts involve the separation of legal ownership and equitable (beneficial) ownership.

A trustee holds the legal title but not the equitable interest, which is instead held 'on trust' for another.

[CYNthesys]

Re: TRUST LAW

HELP, Im still very confused, sorry if I seem a bit thick

Are you saying that in this case the title holder is the trustee and the lender is the beneficiary?

[CYNthesys]

Re: TRUST LAW

Any further comments please?????

[labman]

Re: TRUST LAW

I think this spells it out clearly, taken word for word from a respected legal dictionary:

Trust - An arrangement in which a settlor transfers property to one or more trustees who hold it for the benefit of one or more persons (the beneficiaries or cestuis que trust, who may include the trustee(s) or the settlor)..............

When a sole beneficiary is 18 or over, of sound mind, and entitled to all the trust property, he may require the trustees to transfer that property to him.

This would mean that this would only apply if there was no other charge on a property, and the sole beneficiary was the settlor which is a physical impossibility as the settlor cannot transfer property to himself.

I hope this clarifies for you.

[strangewayofsavin]

Re: TRUST LAW

A trustee is the reciptitant of the agreement, i.e if i put £1M imto a trust fund then the named on the agreement is the recipetant of the funds, if I had a rich uncle who set up a fund of £1m for me, the £1m must remain, and I the recipetant, can only withdraw the interest earnt, or propety to the value of the ammounted sum.