"Injustice" of current Trust laws

[essence]

Let courts unlock trust stashes in marital bust-ups, says commission

Nov 14, 2012


At present, courts cannot order property held in trusts controlled by one party to be given to the other. The Law Commission wants to address the "injustice" of current laws that allow trusts to be used to avoid having to share property equally when couples separate.

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[McDuck]

Source....

I’d rather that information symmetry was used to solve this problem. Ownership of shared property should be declared at the point of creating a trust. A false declaration, one of of full ownership, should void the Trust.

*It’s interesting to note that Trusts were invented to make sure Knights got their land back when they returned from fighting for the king. (Someone had to be stand-in landlord while they were off giving the king's enemies a bit of biffo).
Trusts were soon after abused for other less fair purposes, anti-trust law came into being in order to redress this abuse.

[Wayne]

With this
""I've had spouses in here who had no idea that 'their' property was in a trust because they haven't been told it had been transferred"
You would have presume that this was done after they were in a relationship therefore should be illegal and undone. I found that article to be very lacking in substance leaving more questions than answers.

[Perry]

It's a populist thing, presently. Also, in times of austerity, I suspect that the
Law Commission is looking for ways to justify sucking on the public teat.

I agree that it's a can of worms. What if a couple marry and one or t'other
already has assets in a Trust?

In cases of deception or attempts to defraud, there does need to be some
sort of redress. Isn't that available, already?

Mind you, it's Granny Herald, so we can't expect too much fulsome accuracy.

[essence]

*musing out loud* If a property is in JOINT names, how can one of the parties go along to a lawyer and shift the property into a Trust??

Surely that isn't correct and must create a sham Trust from the get-go??

[Perry]

I suspect that it's the transfer to a Trust of a property in one spouse's name that's the
issue. Especially if done after 3 years of a relationship with no pre-nuptial agreement.

[Winston001]

It’s interesting to note that Trusts were invented to make sure Knights got their land back when they returned from fighting for the king. (Someone had to be stand-in landlord while they were off giving the king's enemies a bit of biffo).

Good man go to the top of the class. Few people understand that the creation of trusts is steeped in history and 99.9% of the time are established for perfectly good reasons. We are on a property forum so naturally the ideas about trusts are narrowly focused but FYI trusts I've set up over 30 years include protecting intellectually handicapped children, vulnerable adults, rural medical centres, and charities.

I'd have to read the Law Commission report to see what they are getting at but generally in family law practise, trust busting is standard practise. The Law Society have been arranging seminars on this precise subject - breaking a trust - since 2004. Furthermore the law has been amended to make such claims easier. And Section 182 has been in existence for decades allowing claims against trusts: the problem is you have to wait and that can be unfair.

[essence]

I suspect that it's the transfer to a Trust of a property in one spouse's name that's the
issue. Especially if done after 3 years of a relationship with no pre-nuptial agreement.

Ah, yes that would make sense. Although, IMHO, shouldn't one get this sorted BEFORE the three year point if this situation was applicable(?) (Rhetorical comment)

Winston, good comments, thank you.

[Winston001]

It's a populist thing, presently. Also, in times of austerity, I suspect that the
Law Commission is looking for ways to justify sucking on the public teat.

LOL Perry, trolling as usual.

But seriously: if you think anybody on the Law Commission is gagging for more work then please volunteer to fill a position. None of these guys lack a bob or the ability to earn one. Being on the Law Commission is an honour and an awful burden. These people are honourable and utterly genuine in what they do. The venal avaricious types never bother with public service.

[Winston001]

The keys to establishing a trust with the object of protecting assets from claims by creditors and unhappy spouses are twofold: time; and separation from ownership.

Ideally property should be held in a trust established by parents (or uncles aunts grandparents Walt Disney etc). The trust property is used and enjoyed by the children but they never own it, nor do their spouses.