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QLD Declaration of Trust - Right to Reside in Property?

Discussion in 'Property Law Forum' started by Nicci, 24 August 2014.

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  1. Nicci

    Nicci Member

    24 August 2014
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    My business partner and I purchased a property together. It is solely in my name but we have both signed a declaration of trust that I am holding 50% of the property in trust for him. Does this declaration give him any rights to residency?
  2. Sophea

    Sophea Well-Known Member

    16 April 2014
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    In short no. Depending of course on the terms of the trust deed. You are still joint owners of the property effectively - you are a legal and beneficial owner whereas your colleague is simply a beneficial owner. You hold the legal title on trust for their benefit.

    "Beneficiaries essentially have the right to have the trust administered in accordance with its terms and the right to call trustees to account.

    Beneficiaries are entitled to require an accounting from the trustees, but are generally not entitled to an account of the trustees’ reasons for making a decision in one way or another. If the beneficiary believes that the trust has not been properly implemented, the beneficiary may apply to the Court for assistance (although this is always expensive and should be avoided wherever possible). A beneficiary with a disability may need help to do this such as a litigation guardian.

    Otherwise, the beneficiary can expect to benefit from the assets in the trust, but the trustee may well have to balance short and long term considerations, especially in a trust which may last for many years. It may not be a wise thing to spend all of the money of the trust on something now, even though it seems a good thing to do, if this will leave the trustee without any resources in the future."
    Hope that helps.

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