Enhancement of Trust Property

I have the following scenario:

Father gifts 50% of family home on life interest trust for daughter with learning disability. The other 50% share passes to another daughter who is also sole trustee of the trust. Both daughters have been occupying the property.

Over 30+ years the trustee has improved the property considerably using her own funds. Would she have acquired a greater percentage of the property due to the capital she has put into the property or does the trust simply benefit from those contributions? Alternatively, could she argue that the trust is indebted to her for the trust’s share of the capital expenditure?

I would welcome the forum’s views.

Samir Hussain
Gregsons