We have a client who intended to transfer a plot of land to a charitable trust. There is an undated declaration stating that she is transferring the land to the charity but not changing the title deeds instead holding it on bare trust.
Now of course it has been sold and the proceeds are going somewhere. Presumably the trust. Now no paper work has been completed but the client believes that the transfer has been effected. Is he right enough or should it be taxed on him with an ensuing gift of cash? (Scots law by the way).
Many thanks.
MG
Replies (2)
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Transfer must be by deed
For a gift to be valid there must be an intention to give, correct formalities and acceptance by the donee (except for trusts or where it is implied).
As far as I am aware transfers of land must be by deed (s52 Law of Property Act 1925)therefore an undate declaration would not do.
You should ask a lawyer to confirm this (and to confirm that the position is no different in Scotland)