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Discretionary Trust Help
MrB123
Posts: 3 Newbie
My mother passed away suddenly 6 months ago and she was Carer for my 55yo Brother (Mental Issues) He has gone into a Care Home and we have executed the Will and got Probate. A Discretionary Trust was 50% part of the Will, with myself and a family friend as Trustees, with my Brother and myself as Discretionary Beneficiaries. We are now getting a lot of grief from the Council who are "managing" my Brother's money as follows:
They recently asked for a copy of the bank statements showing where his Benefits were previously paid (one of my Mother's Bank A/C's) and initially because there was a healthy balance in the A/C they argued that I should pay this amount to them as it looked as though the money "belonged" to my Brother. I have since proved that my Mothers benefits were also paid into that A/C and they are now asking for 40% of the closing balance to be transferred to him as that was his % of the A/C income. My Brother's outgoings regularly exceeded his income (he is a heavy smoker) and are the Council entitled to ask for this? The only person who knows 100% how that A/C was administered was my Mother, so I don't know where I stand?
The Council are also stating (after asking for a not insignificant lump sum as above) that they will fund his personal living expenses out of his benefits, but are expecting any more expensive items to be funded by the Trust and they are also demanding sight of the Trust Accounts, on a 6 monthly basis. From my knowledge of Discretionary Trusts, although it has never been my intention, my Brother as a Discretionary Beneficiary, doesn't have an Interest and in theory is not entitled to any amount and that any fund distribution to any discretionary beneficiary is at the discretion of the Trustees and not by the Council? And should we send bi-annual accounts to the Council?
It has not ever been my intention not to distribute the Will against my Mother's wishes, but I and my fellow Trustee are feeling a bit threatened by all communication from the Council.
They recently asked for a copy of the bank statements showing where his Benefits were previously paid (one of my Mother's Bank A/C's) and initially because there was a healthy balance in the A/C they argued that I should pay this amount to them as it looked as though the money "belonged" to my Brother. I have since proved that my Mothers benefits were also paid into that A/C and they are now asking for 40% of the closing balance to be transferred to him as that was his % of the A/C income. My Brother's outgoings regularly exceeded his income (he is a heavy smoker) and are the Council entitled to ask for this? The only person who knows 100% how that A/C was administered was my Mother, so I don't know where I stand?
The Council are also stating (after asking for a not insignificant lump sum as above) that they will fund his personal living expenses out of his benefits, but are expecting any more expensive items to be funded by the Trust and they are also demanding sight of the Trust Accounts, on a 6 monthly basis. From my knowledge of Discretionary Trusts, although it has never been my intention, my Brother as a Discretionary Beneficiary, doesn't have an Interest and in theory is not entitled to any amount and that any fund distribution to any discretionary beneficiary is at the discretion of the Trustees and not by the Council? And should we send bi-annual accounts to the Council?
It has not ever been my intention not to distribute the Will against my Mother's wishes, but I and my fellow Trustee are feeling a bit threatened by all communication from the Council.
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Comments
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They only thing you can do in a situation like this is to get some proper legal advice, its far too complex for an online forum to sort out.1
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