Common Intention
Trust
With many properties, while only one name might appear on the title deeds a second person may well have an interest in that property – for example, if a parent buys a property for their adult child to live in as their main residence, or only one spouse or civil partner is named on the deeds.
A Common Intention Trust is a legal arrangement that recognises the second person’s interest in the property, and protects it if you should die. It records that it was always intended that the child or partner had a beneficial share, often from the time they first moved in and began contributing (financially or through maintenance, bills, or improvements).
By formally recognising the beneficial ownership share, the trust aligns ownership with actual occupation and allows Principal Private Residence (PPR) relief on a future sale, thus reducing or removing Capital Gains Tax (CGT) liability. Once the parent’s share is gifted under the trust, it also becomes a Potentially Exempt Transfer (PET) – falling outside the estate after 7 years.
Our tailored Common Intention Trust can prove an invaluable form of protection for three groups in particular:
- Adult children living in a property bought by their parents – the property would be in the parent’s name, and the son or daughter must be using it as their primary residence
- Cohabiting couples – a Common Intention Trust is particularly relevant for cohabiting couples who lack the legal protections of marriage
- Inheritance claims – the Trust provides a route for someone to claim a beneficial interest in property not registered in their name, especially when there is no will
As well as turning occupation into ownership for tax purposes and mitigating CGT and IHT exposure, a tailored Common Intention Trust clarifies intentions to help avoid future disputes and protect family assets in a fair, structured way. If you feel this would be right for you, we can give you all the specialist advice and help you need.
Simply contact us now and we can arrange a home visit from one of our experts.
Talk to your Aiker Legacy Adviser
Arrange a home visit now to discuss your current situation, and which options might suit you best, and how regular reviews can help you be sure your legacy isn’t at risk. The whole process is easy, and starts by simply giving us your details.