The family home
Under MAP criteria, your client cannot own any property. Therefore, if your client does own it in part or in whole, they must look at the FAB procedure.
For FAB, the family home is an asset and will vest in the trustee as at the date of sequestration.
If your client lives with someone and the title deeds are in the other person’s name, it does not become part of the client’s estate or vest in the trustee.
To be sure about this and if there are any doubts, obtain a copy of the title deeds from the Registers of Scotland.
If the title deeds are in the client’s sole name, 100 per cent of the equity vests in the trustee. If it is in joint names, 50 per cent vests in the trustee. How the trustee deals with the asset is determined by how much equity there is. Where there is extensive equity, the trustee will more than likely want to sell the property and realise it for the benefit of the creditors. Where there is little or no realisable equity, the trustee has further options.