Trust help please

billy2shots

I hope this is the right place to put this thread as it covers quite a few things. 


My parents are both still alive and in good health. 
They bought some land 7/8 years ago and presumed it would still be in the family when they passed away so created a Trust. They put me as 50% beneficiary but instead of nominating my sister for the other half (due to her historic criminal and fraudulent behaviour towards us) they split that 50% between her 4 children (currently aged 9-15). 
I was asked and signed to say I would also be the only Trustee. 
My parents kept the paperwork as I said, they are in good health (64). 

From discussions at the time and how I remember it, the Trust must be a discretionary instrument because my parents made it clear they didn't want any benefit indirectly going to my sister so it won't automatically go to the children at 18. Instead I would need to use 'discretion' whether to release funds or asset's. Believe me, my sister would/will try and force her kids to hand over any money. I will look for the 'deed' when I'm next with them. 

Fast forward to today. I'm clear that my parents have gifted this asset now and as the trustee I am responsible for getting the best return/outcome for the asset (land). However I will also follow my parents wishes as they were the ones that bought and spent lots of money making 'improvments'. They have paid over £100k for mains electricity, water and an agricultural barn and other outbuildings not to met the initial purchase price. 

My parents used this land with my sister in an attempt build and maintain a relationship which has backfired big time. My sister has stolen and sold farming vehicles and machinery belonging to my parents, assaulted my mum (at the land) and has now left the country with 3/4 of her kids (1 is with my parents) as well as owing large debt's to banks and businesses. 

With all that I'm mind my parents really don't want this land in the family anymore. It is also a security risk being left empty for passing 'travellers' as well as racking up yearly costs for insurance etc. 

As 'the' trustee, I agree with their decision and I have put the land up for sale and have just accepted an offer. 
The land is registered in my name so I believe I have acted correctly? 

My sister having found out is raising hell with my solicitor and is trying to get a pay off to stop her causing problems. She wants £13k for imaginary things she is saying were left on the land belonging to her and wants me to sign the trust over to her for her childrens share. I'm pretty confident I can just ignore her requests and she can appointment her own solicitor if she has a legal claim which she won't because she has no claim. 

On to my questions. 

1. As I understand it, I am doing nothing wrong selling the land that I hold full title to. The proceeds (after all fees) will go to me directly which I will put in a new bank account so it's easy to see any outgoings / incomings. 

2. I will inform HMRC and pay the CGT, trusts I believe have a lower allowance, half of the current personal allowance then 20% after that for non residential property?

3. I will print clear paperwork at the time which will evidence the total amount of cash after all fees and then break it down to show my 50% and the children's 4 lots of 12.5%. I will attempt to pass this info on to the beneficiaries. 
I believe that should be enough to be acting correctly?

 4. Trust Bank accounts seem to be disappearing from high Street banks. Metro still has a facility but the nearest branch which I will have to visit is 50 minutes away. 
Do I have to use a Trust account?

5. To be completely honest, my parents would rather have the cash back then make provision in their will, I'm fine with this as it was never my money. Can this form of trust be terminated?
This would also save in annual paperwork to HMRC to declare any income/interest which will get boring fast. 
I know this will have future IHT conations and risk the money being spent on care but the money is theirs, ok not legally but I see it as theirs. 

xylophone

Your solicitor (if necessary by referring to a Trust Specialist and Tax Accountant) is the best placed to advise you in this matter.

Suffern

Is putting my house in trust with our only child (actually adult) in trust?  Quick background my wife and I are in our mid-late 60's and in very good health are not expecting to go into care at all (we want to live here till dying).  We do want our property to go to our child/grandchild when the second one dies,  We want to reduce the IHT and are also concerned about the slim possibiity of care home costs, our parents were of sound mental/medical state when they died (all died at home) so the chances of us needing care are slim but you never know.  so bottom line: is a trust worth the money to set it up???

xylophone

Is your joint estate (including the property) likely to be valued in excess of £1,000,000? If not , (and considering the indexing of the nil rate band and residence nil rate band due to come into force next year), then IHT may not be an issue.

See https://www.aprilking.co.uk/blog/deprivation-of-assets-guide/