On 30 June one of our property litigation partners, Warren Reid, gave a talk on the Trusts of Land and Appointment of Trustees Act 1996 ("TOLATA 1996") to the Institute of Legacy Management.
Invariably forecasting legacies can be hard enough for charities. Sometimes, when charities are beneficiaries under a will, having been left a specific legacy or as a residuary beneficiary, difficulties can arise if other co-owners are reluctant to manage or realise the value in the property asset. In his talk Warren explains how TOLATA 1996 can potentially assist a charity in this situation.
Co-owners will hold the property on a trust for land. Making use of a case study and explaining the legal authorities and leading cases, in his talk Warren explains the orders that the court can, potentially, make on behalf of the co-owners where it has been impossible to reach an agreement. The talk also covers matters that the court will take into account when deciding what order to make. Importantly Warren explains how, properly guided, more often than not it is possible to avoid litigation and court proceedings with good communication and a dialogue with any other co-owner who may be reluctant to co-operate and sell. Putting the right strategy in place at the earliest opportunity will usually help to ensure the charity is best placed to take advantage of TOLATA 1996, and realise its legacy and beneficial interest as and when a sale and cash flow is required.