Executor trust bank accounts

Crabapple

seh567 wrote: »

what happens to the remaining monies if the house is sold and the new one purchased at a lower value, ie house sold for £300k new flat purchased for £180 leaving and balance of £120k in cash minus expenses?

The Trustees would have to review what is best for that money and probably take some investment advice. You wouldn't want that kind of money just sat in the bank. At all times they have to balance the best interests of the life tenant and those who will be entitled when the Trust comes to an end.

SeniorSam

seh567 wrote: »

what happens to the remaining monies if the house is sold and the new one purchased at a lower value, ie house sold for £300k new flat purchased for £180 leaving and balance of £120k in cash minus expenses?

There can be no distribution of the Trust whilst there is a life interest.

Trustees hava a duty of care regarding all assets of the Trust. They cannot take undue risk and as such need to be careful of any investment that would have an element of risk attached.

Sam

Mojisola

seh567 wrote: »

what happens to the remaining monies if the house is sold and the new one purchased at a lower value, ie house sold for £300k new flat purchased for £180 leaving and balance of £120k in cash minus expenses?

Unless there is a clause saying that some money can be distributed in the event of the sale, the person benefiting from the trust would be able to use any income from the capital but not the capital itself.