I am creating a life interest trust of a share of the family home. Does one usually need to include some liquid assets in the fund to cover expenses? The precedent I am using says that the trustees must allow the beneficiary to occupy as long as she pays all outgoings on the property and pays the insurance. However, it says nothing about other expenses, such as accountancy or legal expenses. Thank you for the help.
Surely the incipient questions are: who benefits from the outlay and whose funds should therefore ultimately, if not immediately, bear the burden of the cost. Trustees ought to have very sensitive antennae trained on the distinction for fear of breach of trust, though non-professionals may have a less refined conscience and no SRA waiting to pounce.
Your foresight in anticipating, and suggesting funding for, issues that may very well arise in future and cause friction is just what clients deserve.
Jack Harper
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