Trust of Land - Retrospective

A retrospective Trust of Land (TOL) is a type of trust established after the fact, which allows for the creation of a trust over a property that has already been purchased and registered in the name(s) of the buyer(s).

A TOL can be established when two or more individuals own a property jointly and wish to establish a formal arrangement to determine how the property will be managed and who is entitled to what shares of the property's value. A retrospective TOL can be used to clarify the respective interests of the parties and prevent disputes over the ownership of the property.

A retrospective TOL can be established by a written declaration of trust signed by all the joint owners of the property. The declaration sets out the terms of the trust and the shares in which each party holds the property.

Once the TOL is established, the parties can agree on how to manage the property, such as who will pay for repairs, maintenance, or other expenses related to the property. The trust can also include provisions for the sale of the property or the distribution of the proceeds if the property is sold.

Retrospective TOLs can be particularly useful in situations where there is a change in the relationship between the joint owners, such as a divorce or the dissolution of a business partnership. In these cases, a TOL can help ensure a fair and equitable distribution of the property's value.

It is important to note that there may be tax implications associated with establishing a retrospective TOL, such as Capital Gains Tax (CGT) or Stamp Duty Land Tax (SDLT).