Asset LiabilityMay 19th, 2017
The Allocated Land
Allocated Land is the sum total of areas used by a beneficiary which in the case of the UK is 1 acre. The basis for this area is the overall area of the UK divided by it's population and pro-rata for any other area of free movement. Asset depravity Beneficiary status is dependent upon available assets.
- Class AB Asset Beneficiary
Is a person who has by some means provided the trust with assets to cover 1 acre or more of land.
- Class B Beneficiary
Those who have no material assets
- Class BwA Beneficiary with Assets
If a Class B beneficiary subsequently acquires assets they acquire a Class BwA status. Such a person must contribute to the trust within three years of a written request an amount that would otherwise be needed to buy the land, they benefit from, on the open market. Failure will initiate eviction and a claim for costs.
- Class C BwA beneficiaries who fail to pay their way when required.
- Class D Denied
Those with enough assets to buy their own land and not prepared to.
Examples of Class BwA
Parent R provides money to Child J to help purchase a residential property which amount to 7 of 25 shares in property. R held this money for the purpose of enhancing the trust above that of supporting J. However 2 of the 25 are given without condition to J.
The value of land is highly variable but at this junction of time and space five to ten thousand pounds seems adequate for a person to buy land and grow food etc.
In the above 1/5 of is money does not belong to the trust and J can use this money for personal residence or land purchase aligned to the trust. Should J sell the property and not put all 7/25th then J would be a Class D person and not entitled to benefit from the trust.
The logic is that J has been provided by way of residential security should they choose not to convert this to land they should not also benefit from land.