Trust law
ILLEGALITY OF TRUST? Do I have a case against settlor?
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Sharn
I agreed my friend putting properties and a bank a/c in my name to receive rents to pay mortgages. He paid no CGT or rental tax. I derived no benefits from properties or rents but liable for debts etc. never considered consequences & trusted him. Found out about 10 yrs non-payment of taxes - impacted on my tax. I withdrew his authority from bank account & withdrew £’s to pay taxes but he diverted rents from account & mortgages fell into arrears ruining my credit. I used money from a/c to pay arrears & personal use. I never used bank a/c over the yrs it was in my name he received paperwork. This turned out to be a Trust and I a trustee. I declared to HMRC much to anger of ‘friend’ who mths later declared to HMRC. I created a large debt to clear this up. He produced false accounts using struck off accountant friend that he earned little from rents & tried to implicate me saying he agreed to pay me 10% of each property sold. He admits I got nothing. We had ADR he is to get all back, I feel injustice. He wittled 10% gross to 3%. He says I get percentage IF he decides to sell. I feel conned, obvious tax dodge. Do I have recourse. He received all mail to his house which I own plus 9 presently. He sold 11 others.
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