paying for works on discretionary trust property

finneous

The family have a discretionary trust which contains a house, the house now needs a new roof, has anyone had to deal wwith withdrawing funds from other parts of the trust to pay for the works?

What forms, "deeds " do we need to sort out so we keep tax man and law happy?

If we pay for the works from our savings what problems does this cause later down the road with tax and closing the trust?

Finally do we need to pay the solicitor again to do all this?

Mattygroves2

finneous wrote: »

The family have a discretionary trust which contains a house, the house now needs a new roof, has anyone had to deal wwith withdrawing funds from other parts of the trust to pay for the works?

What forms, "deeds " do we need to sort out so we keep tax man and law happy?

If we pay for the works from our savings what problems does this cause later down the road with tax and closing the trust?

Finally do we need to pay the solicitor again to do all this?

Assuming the Trust has other assets the Trustees can simply sell them to provide the cash to pay for the roof. They will have to report any gains or losses on the annual tax return (and pay any CGT due) and all invoices for the work should be in the Trust's name but nothing special. You'd also be wise to draft a set of minutes for a Trustee's meeting detailing why they have made the decisions they have.

I don't know the answer to using outside funds on a Trust property but suspect it may create a creditor in the Trust for the funds introduced.

g6jns_2

Mattygroves2 wrote: »

Assuming the Trust has other assets the Trustees can simply sell them to provide the cash to pay for the roof. They will have to report any gains or losses on the annual tax return (and pay any CGT due) and all invoices for the work should be in the Trust's name but nothing special. You'd also be wise to draft a set of minutes for a Trustee's meeting detailing why they have made the decisions they have.

I don't know the answer to using outside funds on a Trust property but suspect it may create a creditor in the Trust for the funds introduced.

Seems sound but what does the trust deed say? You would be wise to spend a few pounds asking a trust specialist. Look for a solicitor who belongs tomSTEP.