Who owns trust property?

A trust is a legal arrangement where the settlor transfers assets or property to individuals or a company (the trustees) to manage and hold for the benefit of others (the beneficiaries). 

Property ownership in a trust

In the context of a trust, the concept of property ownership is split between legal ownership and beneficial ownership. 

• Legal Ownership: The trustees hold the legal title to the trust property. This means they are the ones legally empowered to deal with and administer the assets, including buying, selling, and managing them, as required by the terms of the trust deed.
• Beneficial Ownership: The beneficiaries are the individuals or groups who ultimately benefit from the trust assets and income. While they don’t have legal title, they are the intended recipients of the benefits generated by the trust property. 

In essence, trustees are responsible for managing the trust property for the benefit of the beneficiaries, adhering to the guidelines set out in the trust document, which could be a trust deed or a will. 

For example, if a house is put into a trust, the trustees become the legal owners of the house, responsible for its management, but the beneficiaries are the ones who benefit from it (e.g., by living in it or receiving rent from it).

If you would like to find out more about setting up a Trust, please contact Senior Solicitor, Gareth Morgan. Find out more about our Private Wealth Protection services here.