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Putting property in a trust

  • 04-11-2012 9:39pm
    #1
    Registered Users, Registered Users 2 Posts: 58 ✭✭


    I have no legal experience or knowledge, I am just looking for a pointer of where I should start looking.

    Is there a structure or instrument in Irish law to put a piece of land in trust for everyone's benefit. I hope this example clarifies: I want to donate a field to the people of Ireland but I want to add two constraints that the trees that grow in it should never be cut down (save for some environmental concern) and the field cannot be converted/sold/re-designated for another purpose - such as a car park.

    I read the charter and hope I am still in the allowed question type.

    What should I look for? Is there a simple solution? I appreciate the are lots of follow on stuff like insurance & liability, but I am interested in seeing if there is a legal structure that supports this.

    Thanks in advance.


Comments

  • Banned (with Prison Access) Posts: 2,381 ✭✭✭Doom


    That's The Bull's field...


  • Legal Moderators, Society & Culture Moderators Posts: 4,338 Mod ✭✭✭✭Tom Young


    A solicitor.


  • Closed Accounts Posts: 946 ✭✭✭Predalien


    I'd question whether or not it is possible for such a trust to be created, I don't think it could be considered a charitable trust and would consider the restrictions imposed to be fairly severe and contrary to public policy as the land would be in no way marketable.


  • Registered Users, Registered Users 2 Posts: 3 Legally challenged


    The rule against perpetuaties might come into play here, i.e the law will only allow you to entrust something to someone for I think a maximum of 21years, I'm a bit rusty but otherwise the trust defaults to the testators estate.
    It would also depend on the benefit if any the trust would have on the community in terms of enjoyment etc. Eoin Quills Law book "equity and trusts" in Ireland should be an ideal reference point.


  • Registered Users, Registered Users 2 Posts: 26,989 ✭✭✭✭Peregrinus


    You're problem, as Legally challenged points out, is the rule against perpetuities.

    One way around the problem is to establish a charitable trust. Say, a trust to provide a space for public recreation and environmental education, or something of the kind. The terms of the trust forbid cutting down trees on land owned by the trust (except for specified reasons) or the use of the land for building development, and they contain any other restrictions or requirements you think necessary. Then you transfer the field to the trustees. Charitable trusts are not limited by the rule against perpetuities.

    But you face two problems:

    First, the trust is going to need more than just the field. Even if they manage the landscape with a very light hand, they will need some money to manage it, and quite a lot of money if it's going to be open to the public, or used for any kind of organised activity. So you'll need to donate the field to them, plus some other property which will generate an income so they can maintain the field and carry out whatever actitivities the trust is supposed to carry out.

    Secondly, the High Court has an inherent power to regulate and, if necessary, vary charitable trusts. So the trustees could at some point in the future head off to court and say "we need permission to, e.g., sell off half the field and use the money to do X, Y or Z, becaus the trust as orginally conceived is no longer viable". And the court can approve.

    There is another avenue which might be worth exploring. Under the Planning Acts, there is provision for land to be "sterilised" by agreement between the owner and the local authority. Planning sterilosiation effectively prevents future building development of the land. The local authority will only agree if sterilisation of the land is consistent with the development plan for the area, and if they're satisified that proper arrangements have been made for the permitted use of the land to continue (which, again, probably means setting up a trust, or handing the land over to some existing trust, to maintain and manage the land, Or possibly you could hand the flied over to the local authority, to be run as a park, or incorporated into an existing park, subject to the no-cutting-down-trees no-building rules that you want). If I'm not mistake, Airfield Farm in Dundrum is sterililsed in this way, or part of it is.


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  • Registered Users, Registered Users 2 Posts: 58 ✭✭bjroche


    Peregrinus wrote: »
    You're problem, as Legally challenged points out, is the rule against perpetuities.

    One way around the problem is to establish a charitable trust. Say, a trust to provide a space for public recreation and environmental education, or something of the kind. The terms of the trust forbid cutting down trees on land owned by the trust (except for specified reasons) or the use of the land for building development, and they contain any other restrictions or requirements you think necessary. Then you transfer the field to the trustees. Charitable trusts are not limited by the rule against perpetuities.

    But you face two problems:

    First, the trust is going to need more than just the field. Even if they manage the landscape with a very light hand, they will need some money to manage it, and quite a lot of money if it's going to be open to the public, or used for any kind of organised activity. So you'll need to donate the field to them, plus some other property which will generate an income so they can maintain the field and carry out whatever actitivities the trust is supposed to carry out.

    Secondly, the High Court has an inherent power to regulate and, if necessary, vary charitable trusts. So the trustees could at some point in the future head off to court and say "we need permission to, e.g., sell off half the field and use the money to do X, Y or Z, becaus the trust as orginally conceived is no longer viable". And the court can approve.

    There is another avenue which might be worth exploring. Under the Planning Acts, there is provision for land to be "sterilised" by agreement between the owner and the local authority. Planning sterilosiation effectively prevents future building development of the land. The local authority will only agree if sterilisation of the land is consistent with the development plan for the area, and if they're satisified that proper arrangements have been made for the permitted use of the land to continue (which, again, probably means setting up a trust, or handing the land over to some existing trust, to maintain and manage the land, Or possibly you could hand the flied over to the local authority, to be run as a park, or incorporated into an existing park, subject to the no-cutting-down-trees no-building rules that you want). If I'm not mistake, Airfield Farm in Dundrum is sterililsed in this way, or part of it is.

    Thank you, this and the previous comment answers my question perfectly!


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