Cohabitation – the Law Commission recommendations

One of the most important non-tax motives for arranging for property to be held in trust is to ensure that it will be held for the benefit of those beneficiaries who are favoured by the settlor, rather than those whose may have claims against the settlor’s chosen beneficiaries. Increasingly, settlors are aware of the property transfer orders which may be made in divorce proceedings. Property which has been gifted outright to a beneficiary may devolve in a way which is very different to that envisaged by the donor (or, for that matter, desired by the donee) following divorce proceedings.