I have a client who currently has a net estate worth £7m. This comprises of 84 properties. He has no spouse, no children and wants to leave everything to his mother, sister and her sister’s 2 kids. His mother and sister are older than him so it is likely the niece and nephew will be the beneficiaries.
However, he wants to “preserve” his main residence like a type of “museum” but also just because he doesn’t want anyone to throw his stuff out and keep it as it is for a period of time. He is a bit sceptical about leaving everything to the absolute discretion of trustees so I just wanted to check with you what options I was considering and see if you agree;
- Put whole estate into a discretionary trust and leave a Low regarding his beneficiaries, preserving the property etc; OR
- Leave his main residence only as a gift to professional trustees with a LoW setting out how he wants them to deal with it and leave the residue absolutely to his mum, sister and niece and nephew in certain percentages.
I understand the trustees will have to manage, maintain and insure the property and will therefore need access to money from the Trust Fund for whatever period he states, or up to 125 years. The full DT would therefore in my view be the better option to ensure the property doesn’t have to be sold due to lack of finances.
Not sure if there are any other ways, but as I have never come across this type of request it would be interesting to hear any thoughts!