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Posted Fri, 03 Nov 2023 09:50:38 GMT by John William
I am dealing with a change of the trustees of the C Family Asset Protection Trust.  The trust owns C's house, a registered property.  The original trustees as shown in the trust deed were, say, A, B & C.  C is also the Settlor. Under the trust deed the Settlor has express powers to remove and replace any one or more of the trustees.  The Settlor has executed a deed removing A & B and appointing D & E.  The deed contains a declaration by the Settlor under Section 40 (1) (a) Trustee Act 1925 that the legal estate should vest in the new and continuing trustees jointly as trustees of the C Family Asset Protection Trust. The removed trustees, A & B, are not parties to the deed of removal and appointment. C, D, & E were the parties and have executed the deed.

Reading section 7.2.2 of Practice Guide 24 it seems that an application to change the proprietorship register should be straightforward using form AP1 supported by certified copies of the original trust deed, the deed of removal and appointment and ID1or ID3's for C, D & E.

My concern is that the proprietorship register names A, B & C as individuals without any reference to them as trustees of the C Family Protection Trust or even as trustees at all.  There is the usual Form A restriction (as in any multi owner situation other than two proprietors holding as beneficial joint tenants), but nothing to show that A, B, & C hold as trustees.

Will Land Registry accept an application using only Form AP1 or will it be necessary to use the usual TR1 which will require cooperation and signatures of the removed trustees?  This would create problems because A & B were solicitor partners of a firm which went into insolvent administration two years ago and has been dissolved.  A & B are no longer in practice and are not contactable at their former business address shown on the proprietorship register.
Posted Fri, 03 Nov 2023 10:03:09 GMT by Adam Hookway
John - form AP1 is the generic application form for updating a registered title so will always be required and accepted. 
PG 24 section 7.2.2 then explains what we require re the deed of appointment and the key part is "enclosing evidence to satisfy the registrar that the persons making the appointment or effecting the retirement are entitled to do so"
As you appear to have that evidence "Under the trust deed the Settlor has express powers to remove and replace any one or more of the trustees" I'm assuming the need for A, B & C to be involved is negated.
If you were looking to do a Transfer then A, B & C would have to be involved usually but that's not the case here it seems
We obviously won't be able to confirm until the application is made and the supporting evidence submitted
Posted Fri, 03 Nov 2023 11:16:58 GMT by John William

Hello Adam,

Thanks for your prompt reply.

There is no doubt that I can satisfy the registrar that C, the Settlor (and continuing trustee) was entitled to remove A & B and appoint D & E. That is clear in the trust deed which will be submitted with an AP1.

My question really is whether the fact that A & B appear on the register as individuals, rather than acting in their capacity as trustees will force me to also use a TR1.

My concern arises from having discovered a similar situation on a trusts discussion forum run by the Society of Trust and Estate Practitioners.  I am not a member of STEP but I have been able to copy relevant extracts and these are in the attached pdf file.  I can be pretty certain from his description that Stephen Horton ( the STEP member involved ) was dealing with another case arising from the failure of the same firm of solicitors.  This was W.W.& J McClure based in Glasgow but with several satellite offices in England.

There are thought to be tens of thousands of Family Protection Trusts set up by McClures where a similar issue may arise.  Most of them involve trusts written under english law and hold property in your registrar's "jurisdiction".  In some cases the proprietorship register names the individuals but adds "as trustees of the XYZ Family Protection Trust".  If so the potential problem described in my initial question and described in the STEP posts clearly doesn't arise.  I have contact through a Facebook group known as the "Victims of McClures Solicitors" with others who have shown me or describe proprietorship registers making no mention of trustees.  McClures failed in 2021 and there are thousands of families who are not yet even aware that they are caught up in this situation.  New members join the Facebook group every day, there are currently over 1600.

I suspect that HM Land Registry will soon be hit with a "tidal wave" of questions about and applications for removing the the McClures trustees from proprietorship registers.  Is there no way that you can provide some guidance based upon the facts outlined in my original question?

Posted Fri, 03 Nov 2023 11:24:43 GMT by Adam Hookway
John - nothing forces you to use a TR1 if the Deed of A does the job for you. PG 24 covers it for you depending on how the change is being made.
There are a variety of ways, as you already appreciate, for trusts/trustees to be registered and as such each application is treated on merit. There won't be a one-size fits all scenario to share other than the PG 24 guidance mainly because the register entries, restriction(s) and the Deed o A all have to be considered on merit

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