SearchDouble Trusts?
Eve asks:
(updated on Monday, June 17th 2019)
We are purchasing a property with two dwellings and a sleepout. We are planning on living in one dwelling, renting the other and getting a boarder in the sleepout. We want to protect our only property and put it in a Trust, however we also wanted a defined share as tenants in common. Could we create two Trusts as tenants in common?
Our Experts Answer:
In short, it is possible for a property to be owned by two Trusts as tenants in common. I assume what you are looking to do is split ownership of the property between a Trust set up for you and a Trust set up for your spouse or partner. The two Trusts could then own whatever defined percentage of the property you wish.
While this addresses your question directly, there are some broader complexities here, in that there can be clever ways to structure ownership of a property that is partly applied towards private purposes and partly applied towards rental purposes. You also mention a boarder – this brings into play the boarding service rules, which can allow income of up to a certain level to be excluded from your annual tax return, but in doing so means you also exclude claiming costs associated with the provision of those services as a deduction.
You should consider seeking further advice in this regard.
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