Hello alba and welcome to the trust deed forum.

I think there may be reason for some concern about this situation.

Hopefully Mark, Chris, Kevin or Shona can confirm the position soon when they next visit the forum.

Hi alba

If there has been a formal transfer of title, then your 1/3rd interest in the property will, I suspect, be regarded as an asset.

There may be other factors on the title being conditional on events etc, but it's hard to comment with any degree of certainty without the full details.

Mark

Thanks for the replies, there has been a formal transfer, its says on the document my parents retain a liferent on the property. My thoughts were i or we cant for example sell the property until both my parents have passed away so it technically isnt my 1/3 until then?

Hi alba

Unfortunately it is.

As soon as formal conveyance takes place, then title transfers and your Trustee has an interest in your one third share of the property. The lifetime condition is just that, a condition and no more.

I wish I could give you better news, but your ownership and the trustees interest crystallised immediately the transfer of the property took place.

Mark

Hello alba,

I think you're going to need to have an open chat with your parents.

I think you're each going to need to seek out some legal advice about your positions as well.

A horrible situation but one that shouldn't be ignored.

oh no 🙁 i think i'll have a chat with parents and get them to remove me from the deed

If there is a liferent situation then your trustee could make this clear to your creditors and suggest that they might agree to your discharge regardless, given the possible length of time it could take to realise the asset anyway.

Thanks for that Kevin, there is also a good bit of equity in my house for release at the end, i think at the moment they are getting back 80p for in every pound (i think)

Hi

I would agree that the asset cannot be ignored by your trustee, however, as Kevin said, the Trustee can go to the creditors and advise them of the situation, seeking discharge without touching the property. The alternative - it could take years before they get any money back from it anyway. Good luck.

Hi Alba,

Sorry cannot offer any solutions to your predicament, other than what has been suggested.

Chris

thanks for everyone taking the time to respond!