House in trust, new partner moved in with step Mother - UPDATE bottom pg 2 help?

Manchee

Sorry if this is in the wrong section, I know its about property, but i thought it would fit here better than the house buying/renting/selling bit.

My father died a year and a half ago and left his half of his and my step mothers house in trust for my sister and I. My step mother is now living with a new partner (still in the house) and plans to sell the house so they can move elsewhere, I guess there are too many memories. I was just wondering, I've been told that the trust is affected when the surviving partner remarries or cohabits, but I dont know how it is affected. Obviously, we care about our step mother a great deal, and the last thing I would want to do would be to upset her by bring it up. I guess what I wanted to know was how her living with a new partner affects the trust that was set up for my sister and I.

I've been thinking it would be a good idea to get a copy of his will, I dont want to ask our step mother as I wouldnt want her to think we dont trust her. Oh its all so difficult, isnt it?

lbeadl

I'm not an expert in this area at all, but I'm pretty sure once an estate has been through probate, the will becomes a matter of public record.

I'm afraid I don't know where you would need to go to try & find this out, or get hold of a copy, but i'm sure someone with the answer will be along soon:)

McKneff

But if half the house belongs to you and your sister, your mothr in law cannot sell the house without your consents.

If you agreed to that then you would get half of the proceeds, then
stepmother could buy one with her new partner.

thats the way I see it anyway

NAR

I agree 100% with McNeff,can't see how she can sell without you and sister's consent.

Manchee

Neither of us would want to stop her selling, if thats what she wants, we only want the best for her, so if we did need to consent then we would have no problem with that, we have a good relationship with her. I was just wondering when she does sell if all the proceeds of the sale is still kept in trust and usuable for the purchase of another house or whether the fact that she is now cohabiting with another partner effectivly ends the trust or affects it in some way?

Thanks for the reponses so far

McKneff

As long as you get the proceeds from your half, and your sibling doesnt object then I cant see a problem.

But you must protect yourselves, while you obviously trust her 100% you cannot know her new partners character as yet. So please be careful.

NAR

Manchee wrote: »

Neither of us would want to stop her selling, if thats what she wants, we only want the best for her, so if we did need to consent then we would have no problem with that, we have a good relationship with her. I was just wondering when she does sell if all the proceeds of the sale is still kept in trust and usuable for the purchase of another house or whether the fact that she is now cohabiting with another partner effectivly ends the trust or affects it in some way?

Thanks for the reponses so far

As long as she realises she will only receive 50% of the proceeds. Perhaps you need to point that out to her now, as she may not be able to afford to move. Are you sure it is in trust (what ages are you two?). I think you need to see the will and the exact wording.

Manchee

NAR wrote: »

As long as she realises she will only receive 50% of the proceeds. Perhaps you need to point that out to her now, as she may not be able to afford to move. Are you sure it is in trust (what ages are you two?). I think you need to see the will and the exact wording.

I am 30, my sister is 31. As far as I know it is in trust, that is what my step mother told us shortly after the funeral. But yes, I think you're right I should try and get a copy of the will. I havent tried to before because it made me feel like I was being disloyal and untrusting.

daska

Who was the executor? Who are the Trustees? Are they people you can ask easily?

The existence of a Trust does not in itself prevent a property being sold and does not guarantee that the beneficiaries will be told if a property is sold. So the first question that needs answering is:

Has a charge been placed on the property at the Land Registry? Assuming it has then this should come to light when she attempts to sell and it should prevent your share of the property being lost.

As to what happens to your share of the property when it is sold, that will depend on the terms of the Will. It may be that there is a restrictive covenant in there that limits her use of the Trust's assets if she re-marries or cohabits but it's not standard, most give a life usage to the surviving spouse. In essence, without knowing the terms of the Will you can't assume that she will only get 50% of the proceeds with you and your sister inheriting upon the sale. It's highly likely that she will be entitled to a loan of the proceeds which she can spend as she likes. It's down to the Trustees to ensure that the assets are adequately protected for the beneficiaries.

You can get a copy fo the Will via the Probate Service (justice.gov.uk) and they have a helpline 0845 30 20 900 (The Will will nominate the Trustees and state the terms of the Trust.)

(There is no age limit on Trusts, both my sister and I were over 40 when Mum's was set up.)

Manchee

daska wrote: »

Who was the executor? Is it someone you can ask easily?

If not then I can think of a few questions to start with:

Has a charge been placed on the property at the Land Registry?

What terms does the Will place on the Trust? You can get a copy fo the Will via the Probate Service (justice.gov.uk) and they have a helpline 0845 30 20 900

I think it was my step mother and, I am assuming, my fathers solicitor who executed the will. If I buy the title register from the land registry website, should it list mine and my sisters name on the charges register?

Manchee

daska wrote: »

As to what happens to your share of the property when it is sold, that will depend on the terms of the Will. It may be that there is a restrictive covenant in there that limits her use of the Trust's assets if she re-marries or cohabits but it's not standard, most give a life usage to the surviving spouse. In essence, without knowing the terms of the Will you can't assume that she will only get 50% of the proceeds with you and your sister inheriting upon the sale.

I wasnt assuming we would receive 50% of the sale price, were not the money grabbing kind of people, but we have never met her new partner. I just wanted to be sure that our interests were protected