Renting a property in trust

MartinW6

My 84 year old mother has moved in with us, and is intending to rent her house out in the near future.  Half of the property is in trust for me (I can't recall what type of trust off the top of my head).  Am I right in assuming that a) there's no legal implication to prevent my mother from renting the property out, and b) she can receive the full amount (i.e. I don't have to receive half the rent)?

Many thanks for your advice in advance.

princeofpounds

Depends entirely on the type of trust. 

https://www.gov.uk/trusts-taxes/types-of-trust

Some require trustees to pass income to the beneficiary, others don't. Some allow the use of the asset by the trustees, some don't. 

Generally speaking the trustee is not allowed to act against the best interests of the beneficiary (that does not necessarily mean what the beneficiary actually wants), but only so far as the trust has an obligation to the beneficiary.

My guess - if she has the lifetime full use of the property and it reverts to you from the trust on her death, rather than passing through her estate, is yes, she can do this without any issues.

getmore4less

Most likely an interest in possession trust when the hubby passed.

As the life tenant they will have beneficial interest in the whole property. 

MartinW6

I believe mum has lifetime full use of the property and it only reverts to me on her passing.

I am named as a registered owner on the title deeds though.  Does that make any difference?

xylophone

I believe mum has lifetime full use of the property 

What exactly are the terms of the Trust?   

MartinW6

There are several parts, but the main terms are as follows;

"I give my beneficial interest in the house xxxxx to my trustees to hold them on trust for sale but with power to postpone the sale and in accordance with the following..."

"When this trust ends, my beneficial interest in the house shall pass to my son..."

xylophone

in accordance with the following..."

and  the following is?

"When this trust ends, 

But what ends the Trust?

Annisele

Assuming everybody involved is over 18, has mental capacity, and agrees with each other, there will almost certainly be a way to ensure that your mother gets to keep all the rental income regardless of what the trust says - even if that way is just you giving the money back to your mother. But there may well be tax or benefits implications. (My "almost" is intended to cover insolvency, I'm sure there are other things that could mess with this.)

Who are the trustees? If OP is registered as an owner, that suggests OP may well be one of the trustees themselves - so could end up with liabilities if the place is rented out.

getmore4less

MartinW6 said:

There are several parts, but the main terms are as follows;

"I give my beneficial interest in the house xxxxx to my trustees to hold them on trust for sale but with power to postpone the sale and in accordance with the following..."

"When this trust ends, my beneficial interest in the house shall pass to my son..."

If there is a life interest(the right to live in the house) that will be elsewhere in the will probably the following, that will be the important bit. 

xylophone

If OP is registered as an owner, that suggests OP may well be one of the trustees themselves 

 If so, he is not a beneficial owner but a legal owner in his capacity as Trustee.

He does not   have a beneficial  interest until such time as the Trust ends and he takes it as remainder man.