Life interest trust problem

Trusts Discussion
1

Hi all.

I am the remaindermen of a trust. I have been left a 70% share of a property my step mum lives in the property.

The will allows step mum to sell it and buy new house. Which she is about to do.

Trustee (step mum ) and other trustee refuse to show me the trust terms or documents.

My concern is can this trust be ended / winded up and the assets then moved onto the new deeds , just as capital with no trust terms any more ?

As the plan seems that way and i feel as if some terms that exist in the trust i suspect might be being ignored. (remarry clause for example. As my step mum will remarry 2 months after buying the new home and if the trust terms are abolished by this ending of trust , no one would ever know and the remarry would have no affect as both trustees would have allowed the trust to end ).

What are my rights as a remaindermen here in ensuring the trust terms stay fixed until the trust period ends (ie step mums death ) as technically when she remarries later in year the trust would end. Due to clause. But seems.both trustees will wind it up and place the capital in the house losing the existing terms

Thank you

2

To add. Surelt it cant end without consent? Ie i would need to consent to my asset then being on the deeds, with no terms, but i would own that 70% of the new property?

I do not want that. I want the terms to continue 100%

3

As you are a beneficiary of the trust (as remainderman) you have a right to see the trust deed and have the trustees account for their stewardship of the trust fund (the house and any other trust assets).

There seems to be a considerable amount at stake and in my view it would be sensible if you took advice from a lawyer who specialises in this type of work - perhaps a member of STEP.

1 Like
4

Thabk you very much MGB.

if say two trustees did submit acounts / records to explain share reductions that were not acceptable, be that just a verbal agreement on money spent or figures that cant legally come out of an estate. In that situation what would be the consequences for trustees in a court if the Beneficiary did then pursue action regarding the trustees actions managing the trust ?

5

Trustees should ensure that they comply strictly with the duties and directions as set out in the trust instrument.
Following the Trustee Act 2000 (TA 2000), trustees now owe a statutory duty of care in addition to their common law duty of care.
A trustee must produce, on request, information and documents relating to the trust when required by
the beneficiaries.
The trustees are responsible for making sure that the trust assets are distributed to the correct beneficiary and in the correct amounts. Failure to discharge this duty can result in personal liability for the trustees.
As suggested by MGB, you do need to seek independent legal advice on this if you feel the trustees are not acting correctly.

6

The Courts will interpret the trust and enforce its conditions.

Taking matters to Court can be very expensive, and should be a last resort, which is why legal advice is essential.

7

Hi Derek

This forum is not designed to provide the advice you need. No one can advise without seeing the terms of the trust for a start. You really do need to see a private client solicitor who specialises in trusts. I realise this will not be free (unlike any advice from this forum) but in the circumstances it would seem the outlay would be very worthwhile in terms of protecting your interests in 70% of a property.

I suggest you start by finding a local solicitor who you can go and see for a face to face meeting (much better than zoom). Have a look here https://www.step.org/directory/members. You can search for an individual (you don’t have to put in a name, just location, specialism (ie Trusts) etc and it will bring up a list of people. Alternatively you can do the same to find a firm on one of the other tabs you will see.

Good luck

Sara

Sara Spencer | Trust Manager

www.trustandestate.co.uk

Sara Spencer Ltd, 8 Kingsway, Harrogate, HG1 5NQ

07952 651881 | 01423 524114

Sara.spencer@trustandestate.co.uk

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2 Likes
8

Thank you sara for the link to the directory, i will locate one from there and thank you very much for taking the time to provide it.

One thing i forgot to add. The will states 75% of full share for me and 25% for my children (both kids are under 12 years old ).

In terms of an attempt to change / end a trust that is part held for young children, are children protected in some way ? I read that under 18s have very strong legal protection and cannot sign away their rights or anything to reduce their entitlement, and nor can anyone on their behalf. I wondered if this was correct from any other professionals point of view.

Thanke

9

Hi Derek

You are welcome.

It is the terms of the trust that protect the beneficiaries, regardless of their age. As I said, you need to consult a solicitor. Anything else is to a lesser or greater extent speculation, and will not help you sort this out.

Good luck

Sara

Sara Spencer | Trust Manager

www.trustandestate.co.uk

Sara Spencer Ltd, 8 Kingsway, Harrogate, HG1 5NQ

07952 651881 | 01423 524114

Sara.spencer@trustandestate.co.uk

Privacy Notice - details of our legal basis for processing your information, retention period for data held, security of your data, your rights under the General Data Protection Regulations (GDPR) including the right to complain can be found in our full Privacy notice

This email and the information contained in it and in any attachments are confidential and may be privileged. If you have received this email in error please notify us immediately. If you are not the intended recipient, you are not authorized to, and must not use, disclose, copy, distribute, retain or rely on this email or any part of it.

Please note that whilst we try to ensure that attachments are virus-free, we cannot accept responsibility for situations where this is not the case.

Any information in this email is advice from the business and not the sender.

Sara Spencer Ltd is a company registered in England, registration number 12304408, registered office 8 Kingsway, Harrogate, HG1 5NQ

1 Like
10

The terms of the trust sound like they will be in the will.
The will is a public document once the grant of probate is issued by the court.
You can go onto the court site and obtain an copy of the grant with the will annexed.
You can then see the terms for yourself and will know whether this is a simple life interest trust for the life tenant’s life only and then 70% to you as remainderman or whether the trustees have any discretion and powers to appoint etc…

Regards Bob Massey

1 Like
11

If you have seen the Will, then you have most likely seen the Trust “Deed”!