Adverse Possession - what does 'on trust' mean?

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GeorgeMoriarty
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Hi,

I have been looking at Adverse Possession recently and do not understand what is meant by the proprietor holding the land 'on trust' for the squatter after the squatter successfully possesses adversely.

What is the reason?

Everyone has been extremely helpful so far and I would like to thank all who assisted me profusely.

Thanks in advance
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username3689312
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Go and find a trust book/website etc, and look at what a trust is and how it operates and then this will answer your question.
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Bitesizelaw
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(Original post by GeorgeMoriarty)
Hi,

I have been looking at Adverse Possession recently and do not understand what is meant by the proprietor holding the land 'on trust' for the squatter after the squatter successfully possesses adversely.

What is the reason?

Everyone has been extremely helpful so far and I would like to thank all who assisted me profusely.

Thanks in advance
If the squatter adversely possesses successfully, but the legal title is still in the name of the original owner, the squatter's ownership needs to be 'recognised' in some way. This is done by the use of a trust.

The legal owner (i.e. the trustee) is merely a 'paper' owner. The squatter is the' beneficial owner’. The beneficiary (the squatter ) has the right to occupy the land and receive any income from the land. The trustee (if they are no longer a 'beneficial' owner themselves which in this scenario they are not) does not.

Think of it as similar to a situation where your granny gave you £200 but your Mum put it into an account in her name to 'look after it until you are older'. Your Mum was the trustee, but the 'real' owner (i.e. the ‘beneficial owner) was you.

When the legal title is transferred to the squatter, the trust will come to an end.

I can appreciate why you are having trouble understanding this but it will become clear when you have studied trusts and the difference between legal and equitable ownership in more depth.

Please give me a 'thumbs up' by clicking on the button below if you find my advice helpful. Thank you. :yy:


Amanda Grant a.k.a. BiteSizeLaw

https://www.linkedin.com/in/amanda-grant-bitesizelaw/
Last edited by Bitesizelaw; 1 year ago
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