Page 36 - Marlborough Living May June 2019
P. 36

     Choosing the Right Solicitor to Provide a High Quality and Rapid Service
Matthew Life, Partner within the Residential Property team at Wansbroughs Solicitors
in Devizes, explains the importance of
BinastrrucetinTg ranuefsfictiesnt solicitor when
purchasing a property...
Bare trusts are true to their name
 a
nd
essentials! The trustees hold the trust property on behalf of the
jus
td
ea
lw
ith
“b
ar
e”
Residential conveyancing has changed a great deal in the last
beneficiary, it really is that simple.
20 years, and the rate of change has been particularly rapid in
The beneficiary owns the
beneficial interest in the property
atnhdethelyaasretetnwtitleod ytoethaerinsc.omTehis has created a number of challenges for it generates (if any) but they will
residential property solicitors. It is a fact that the number of tasks
not own the property outright until
that have to be completed on any transaction increases year
age.
Boarne tyruestsaar,reaofntedn utshedisbyis mainly down to government interventions,
they reach the age of 18 years of
grandparents to gift money to their
additional fraud risk and mortgage company automation.
 grandchildren who are below the age of 18 years old and therefore
unable to receive such funds outright. In many instances,
grandparents may open interest-bearing bank accounts in their
gAranfdechwild/ygreanadrcshildaregn’os nanmoe-s oandethehnatrdansefevr meornehyeinatordthaot f Help-To-Buy Equity
account – either larger one-off, less frequent sums or more frequent
Loans, Help-To-Buy ISAs, or Lifetime ISAs – but now they are
sums, i.e. monthly sums. The grandparents can rest assured in this
incstoanmcemthaot nthepylraetcaien .coEntarocl ohf thsecfuhndesmasesighnatosrieistsof tohewn detailed process, account while their grandchildren are minors. The funds can be
uwseditfhor athinpgsotrhteair lgrtahndacthilrdemqayurierqeuisre,iin.et. escrhaoocl tfeioesn, orby the solicitor. There are
school trips. The only stipulation is that they must benefit the
now (currently) three mortgage portals to connect to. Lenders
grandchild because although grandparents will remain in control of the funds, they actually belong to the grandchild.
require conveyancers to upload documents at every stage of a
When the grandchild attains the age of 18, they can request that the
transaction, in order to keep them informed. Any practitioners
trustees transfer control of the trust property and the income. Bare
who are not efficient in IT will feel the weight of these additional
trustees must bear in mind that if they consider 18 years old to be
too young for their grandchildren to inherit large sums of money
thtaensakbsar;e etrusspt meacy inaoltlbye wsuiitathble.e-mail traffic increasing all the time.
It is not just for grandchildren that bare trusts can be created. Bare
trusts can be created in Wills or when trustees of a pension scheme
What this means for anyone looking to instruct a solicitor to buy
transfer a lump sum death benefit, to name just a couple of
examples. They do not have to contain cash and can, for example,
conrtasineslhlartehs eorirprohpoermty. Teh,eriescatnhbaetmtohreethraen oanreebeknefiyciaqryuestions to ask. Is your of a bare trust (i.e. your grandchildren as a class). All in all, they can
conveyancer able to provide a rapid enough service? Do they
be very flexible in terms of what they contain, who the trustees are and who the beneficiaries are. They can be set up by anyone, not
have the skills and systems to keep up?
just family members for the benefit of other family members.
For both capital gains tax and inheritance tax purposes, the
Here at Wansbroughs we are always looking at ways to evolve
beneficiary is treated as the beneficial owner of any property which
is held in the bare trust, not the trustees. The transfer by the
inadnividuaiml, wphoreovevreth.at mWayebein, invtoetshetetrdustiins aagifnt feorwinhefirirtamnc-ewide computer system tax purposes but no inheritance tax charge will arise immediately
aind itf hthe inldaivtitdeuarl gpiftainrgtinotofth2e0tru1s8t s,uravinveds foirnseoveunryeRarefrsomidential Property Team
the date of the gift then no inheritance tax will be payable at all.
we have created new specialist roles to keep client service at
Capital gains tax might arise on a transfer into the trust if the asset isthnoetcfaoshr.eTfhreorefnorteoagfifetivnteoraybtahnkinacgcowunteindcaosh.wInoul2d0no1t8wewereveryproud trigger a charge to capital gains tax.
to welcome Emma Woodhead into our Residential Property
Once funds are in the bare trust, capital gains tax, if payable, is
Team, to work alongside the solicitors to progress all sales
payable by the beneficiary but they are entitled to their individual
annual exemption of £11,100 and similarly, income tax will be
paynabdle pbyuthrce bheanesfieciasry,. and to be an ever-present point of contact for
Bare trusts have many other potential uses which you can discuss
clients alongside the busy solicitors in the team. With a career
with us should you think this might be of interest to you.
Ifinyourewsoiudldelinketitao lcopnrsoidepreanrytyofbtheishininmdorehdetraial psleasne estate agent with Martin
contact Wansbroughs in Devizes on 01380 733300, email
Walker, and previously Strakers, Emma brings a whole new set of
wealth@wansbroughs.com or your usual contact.
skills to our already experienced team – all designed to keep us
proactive in a demanding market.
Devizes Office Melksham Office
Northgate House, Northgate 7 Spa Road, Melksham,
Street, Devizes SN10 1JX Wiltshire, SN12 7NP
TIefl: 0y1o38u0 7w333o0u0 ld like furtThel:e0r12i2n5 f8o96r1m00 ation from our Residential
  Email: mail@wansbroughs.com E: melksham@wansbroughs.com
Property team please contact Wansbroughs on 01380 733300
www.wansbroughs.com
or email property@wansbroughs.com.
  





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