Trusts, Settlements and Estates Manual

TSEM9150 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation

Clear indication by name

In some cases it will be made clear that the legal owner is not the beneficial owner.

The simplest example is where property is held by 바카라 사이트˜A as trustee for B바카라 사이트™. A is the legal owner (trustee), B is the beneficial owner. A trust in these terms is a bare trust. Or property may be held in the name of 바카라 사이트˜A as nominee for B바카라 사이트™. 바카라 사이트˜Nominee바카라 사이트™ is a bare trustee. Again, A is the legal owner, and B is the beneficial owner.

Declaration of trust

The legal and beneficial ownership of property may be separated by a valid declaration of trust.

Examples

1. Property is said to be held in B바카라 사이트™s name for A. If there is a valid declaration (TSEM9520) showing that B purchases the property in B바카라 사이트™s name for and on behalf of A, and so long as there are no other conditions, A is the beneficial owner of the property. B would be the legal owner, and a nominee or bare trustee, holding the property on trust for A.

2. A decides to transfer beneficial ownership of property that A has purchased to B while still holding it in A바카라 사이트™s own name. If there is a valid declaration (TSEM9520) showing that A has in fact assigned beneficial ownership of the property to B, then A is the legal owner and B is the beneficial owner.