Family member living in property rent free

K_potts

We have purchased a property for a family members partner as per instructions on a will as executors.  The person is to pay no rent but will not own the property, this will be owned by beneficiaries as per directions on the will.  Will the beneficiaries be liable for landlords costs, ie gas checks, fire certs etc? they have been advised by a solicitor they need a tenancy agreement or peppercorn rent agreement, if so, can they pass these costs on to the resident living in the property as the will states that this person will be responsible for keeping property in good order, outgoings paid and insured to the satisfaction of the beneficiaries?

AnotherJoe

Well that was a poisoned chalice of a bequest.

If the will makes no mention of anything other than paying rent then I'd say start from the position that all other costs are to be paid by them but what happens if they challenge that? Could get legal and expensive/

Keep_pedalling

This sounds like a life time interest trust set up by the will. It is quite a common clause, and it does not make the beneficiaries / trustees landlords. The person with the life interest is usually responsible for the upkeep of the property, although other estate assets can be set aside to cover this as well. A LIT should also avoid CGT when the property is eventually sold.

What is the exact wording in the will regarding the trust?

greatcrested

Why ar you starting a new thread when you last one had so many helpful respones?

https://forums.moneysavingexpert.com/discussion/6211963/peppercorn-agreement/p1

K_potts

Thank you for the replies
It says xxx lives in family home for up to 12 months ... then property to be sold and trustees to purchase a new property to the value of £ and hold that property on trust for sale with power to postpone the sale in accordance with the following directions....xxxx may live in the property and use it as her principal place of residence until death without any charge and for so long as she pays all rates and outgoings and keeps the house in good repair and insured to the satisfaction of the trustees