Property trust will

gibbo9

Hope someone can help.
My parents had a property trust will. Dad passed away 6 years ago so a trust would have come into being at that time with Mum and I being trustees (I'm the only child) thus protecting 1/2 the property. Mum 92 has now moved into a care home and the property has been sold to pay the care fees. Solicitors have completed the sale and paid half the proceeds to mums account and half to mine. Is this what would usually happen. Thanks in advance

Yorkshireman99

gibbo9 wrote: »

Hope someone can help.
My parents had a property trust will. Dad passed away 6 years ago so a trust would have come into being at that time with Mum and I being trustees (I'm the only child) thus protecting 1/2 the property. Mum 92 has now moved into a care home and the property has been sold to pay the care fees. Solicitors have completed the sale and paid half the proceeds to mums account and half to mine. Is this what would usually happen. Thanks in advance

Yes this is quite normal. The trust has served its purpose.

gibbo9

Many thanks for the prompt reply. I'd got myself in a bit of a pickle concerning this. Does this sort of event potentially trigger any CGT liability. Thanks in advance again

Yorkshireman99

gibbo9 wrote: »

Many thanks for the prompt reply. I'd got myself in a bit of a pickle concerning this. Does this sort of event potentially trigger any CGT liability. Thanks in advance again

If the trust has liquidated the trust assets as seems to be the case then there is no liability on you. Any liability would be borne by the trust prior to distribution.

gibbo9

Many thanks again

getmore4less

Depends on the type of trust what the tax situation with regards to CGT and IHT.

Dewpoint

I want a Will that allows my sister to benefit from the invested income from the sale of my property (and any savings, investments etc that I may have) when I die (assuming she survives me), otherwise (or on her death if she does survive me) the income is shared between my surviving three children until they reach pensionable age, at which time the residual capital is to be shared between any grandchildren. In the absence of grandchildren, the capital goes nominated charities.


I have no contact with my children and have no one I can really depend on to administer this will after my death. I need a way to appoint Trustees via a legal mechanism so that my wishes are respected.


I've read that a Trust Will is the way to go. Anyone help?

Keep_pedalling

Dewpoint wrote: »

I want a Will that allows my sister to benefit from the invested income from the sale of my property (and any savings, investments etc that I may have) when I die (assuming she survives me), otherwise (or on her death if she does survive me) the income is shared between my surviving three children until they reach pensionable age, at which time the residual capital is to be shared between any grandchildren. In the absence of grandchildren, the capital goes nominated charities.


I have no contact with my children and have no one I can really depend on to administer this will after my death. I need a way to appoint Trustees via a legal mechanism so that my wishes are respected.


I've read that a Trust Will is the way to go. Anyone help?

Difficult, the cost to administer such a trust is likely to eat up most of the income generated by it, especially if you appoint professional administrators.

getmore4less

That is what my grandmother did with first life tenant her hubby hers was distributed per sterpes

Last child dissolved the trust early.

It does not have to be that expensive to administer but long term it needs to be equity based.

As it currently reads there are potential flaws, as each of the 3 children reaches pension age(which pension age?) they lose their share to the other children then child.

What if a grandchildren have children but die charity gets it.

Dewpoint

Yes - I will set a specific date e.g. 2047 when my childrens' benefit ends and then the capital is shared equally among grandchildren (if any). If no grandchildren, or they no longer survive, the money goes to nominated charities in equal shares.

Malthusian

Dewpoint wrote: »

I want a Will that allows my sister to benefit from the invested income from the sale of my property (and any savings, investments etc that I may have) when I die (assuming she survives me), otherwise (or on her death if she does survive me) the income is shared between my surviving three children until they reach pensionable age, at which time the residual capital is to be shared between any grandchildren.

A rather strange wish, to take the income away from your children at the point they need it most. And distribute the capital to their children who at this point will probably be at the peak of their careers and may have no need of the money, so not only is the income switched to people who need it a lot less but they would pay more tax on it.

Plus your children will have reached different ages when they are 2047 (unless they are triplets) (and people retire at different ages anyway) so it has absolutely nothing to do with "pensionable age", it's arbitrary.

HMRC will love you for writing your Will this way but I'm not sure anyone else will.

Why does this seem like a good idea?