Property left partially in trust to me...very confused about how works

DerbyBorn7

My dad died early 2020. When he died, she left all cash to his wife (who isn't my biological mother). His wife, and the executor of the will (my aunt) ) 2 years ago verbally told me that my dad owned 60% of their property, and his wife owns 40%. The executor and his wife both told me verbally, that my dad has left me this 60% share in the property, but it's held in trust and will not go to me until his wife dies. The executor, and his wife, have never shown me the will, or, any trust documents of any type.

In light of this, i obtained the will from online and it does state I get his share in the house, but, his wife has it until death - and the wife can sell and move using the trust.

My dad didn't leave me any money but left his wife 250k in cash. 2 years ago his wife said she was going to 'gift' me money to help me buy a home. She gifted me 100k, and I got a mortgage. at the time I thought this was kind. and it was done as a non refundable gidt via the solictor in the house buy etc.,

My dads wife, is now about to marry again. Her new husband to be has moved into my dads. She tells me she's selling the house.

She then tells me, my share of the 60% should reduce, as she gifted me 2 years ago. Now, of course i have documents showing it as a gift so legally, it's up to me if I allow that.

She has now said that my aunt (who no longer speaks to me) doesn't want to run the trust anymore, so, her and the executor want to change the existing trust into a new trust, which means when she buys the new house with her new man, she will own 35% of the new house, her new husband will own 35% and I will own 30% (thats if ai accept the reduction of my share in their current home). I havent yet decided if I accept the reduction.

my dads wife has pitched this as beneficial to me, as my name will be on the deeds as opposed to the trust / executor (which it is now current on their current home).

My worries and questions are:

the existing trust - if untouched / not changed, and they buy this new house. If my dads wife dies, her new husband will be in the new house, owning 35% (and will probably inherit her 35%) what then happens to my 30% share?

And what if I do sign new docs to change the new trust into this new 'thing' she's asking to happen, it'll be me on the deeds owning 30% and both of them 70% together, is this still exact same as the previous trust, or, have I put myself in a bad situation changing it?

I ask as my worries are, my dad's share of the property being lost here later down the line if the wife dies and the new husband lives there.

I have reason to not trust my dads wife as I know she was unfaithful to my father on occasions so now he's gone, she probably doesn't care too much about my share in the house. I hope I am wrong about that, but, I feel worried i'm being lured into signing something that is going to make the trust my dad set up void and more beneficial to her and her new life.

I have 3 kids, so that share of that house I want them to inherit, and I feel scared to sign and dismantle the current trust (which I have never seen with my own eyes!)

And help or advice would be massively appreciated. I would hire a solicitor but due to living costs I can barely stay out of my overdraft.

Thank you for reading and any helpful words if any one can.

TripleH

If you have a letter stating the 100K given was an unconditional gift then I would stick to your guns with the 60% of your father's house.

Any reason why you can't replace your aunt on the trust?

DerbyBorn7

Is replacing the aunt an option ? And would it be the aunt to agree that and speak with me ?

Ref the 60k .. she's paid for 30k of building works (improvements) and says legal fees to move and sell are 25k...so she's reducing but says these figures are also reason to have me agree to reduce my share .

Thanks 

jonnydeppiwish!

Speak to speak to a solicitor - keep it formal.

GDB2222

Section 36 of the Trustee Act 1925 allows the existing trustees to appoint new trustees. It’s reasonable to suggest that you take your aunt’s place, but they don’t need to agree.

It was nice of your step mum to give you £100k. Somewhat less nice to want to claw it back now.

I can’t see your dad’s will, but it would be usual for the trustees to be able to sell one house and buy another. It would not be usual for a third party, ie the new husband, to be included. 

I suggest that now is the time for you to be paid out for your 60% interest in the property. However, the value is much less than 60% of the vacant possession value, as step mum has the right to live in the house rent free for the rest of her life. Depending on her age and health, you might be looking at a very sizeable discount. An actuary might be able to help you.

TripleH

Her moving costs are irrelevant to you and should come out of her share. She is choosing to move so she bears the expense.

The best solution would be to sell the property and dissolve the trust, you take your 60% and she her 40% after solicitor and agent fees.

The question is whether the building works were necessary / structural or cosmetic? Also was recorded consent received from the trust? If she had a new bathroom put in because she didn't like the fully functioning old one, should you bear that cost, but if she had the roof replaced because the old one had reached the end of it's life, that reasonable to share.

This sounds like proper legal advice is required. You father's widow can't chop and change as she sees fit and without proper documentation could find she has dug herself into a hole. She can't change terms of a trust without proper process.

Any reason why she can't buy with her 40% plus her her beau's contribution and sever ties with you (I mean in no disrespect, I have interpreted neither of you are fans of each other).

GDB2222

TripleH said:

Her moving costs are irrelevant to you and should come out of her share. She is choosing to move so she bears the expense.

The best solution would be to sell the property and dissolve the trust, you take your 60% and she her 40% after solicitor and agent fees.

The question is whether the building works were necessary / structural or cosmetic? Also was recorded consent received from the trust? If she had a new bathroom put in because she didn't like the fully functioning old one, should you bear that cost, but if she had the roof replaced because the old one had reached the end of it's life, that reasonable to share.

This sounds like proper legal advice is required. You father's widow can't chop and change as she sees fit and without proper documentation could find she has dug herself into a hole. She can't change terms of a trust without proper process.

Any reason why she can't buy with her 40% plus her her beau's contribution and sever ties with you (I mean in no disrespect, I have interpreted neither of you are fans of each other).

You can’t expect the full 60%. If stepmother’s life expectancy is 20 years, think of the rent you are missing out on for those 20 years. As I said, an actuary can help you. Or just do a horse trade.

DerbyBorn7

The building works were not essential ...ie new bathrooms , new patio , to 'enhance ' the property.

Can I end this trust and cash out now then ? As the will states she can live in / sell with the trust... the trust moves with her (and I assume goes to me when she dies (.

If it can be cashed out does the executor my aunt have to wrap it up ? As they will object as they want his wife to be comfy... although it's said my aunt does want to run it anymore.

So confusing...

If it transfers to me being on her deeds...if she does, that share could just get stuck with her new husband to reside in ??

GDB2222

You can only cash out now if step mother agrees. However, it’s probably best for both of you to agree to end the trust.

Now you just need to agree a figure.

GDB2222

Incidentally, surely the cost of the patio is small beer in this horse trade. 

TripleH

@GDB2222, yes acceptthe split might not be as initially stated as per what has been said.

Without site of the trust document its only guesswork. My concern is that the Step-mother appears to want to change the terms of the trust to suit her without necessarily following the correct rules.

With the surplus cash left, I am assuming the property is not small in value? 

I think legal advice is essential. It could be that the widow, when buying with a 3rd party will cause the trust to dissolve but is forcing the Op into another long binding situation.