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

DerbyBorn7

I heard that she's tried to sell 3 times now but the existing trust has been "a nightmare " and each one didn't go through.

Makes me wonder why a nightmare??
Could there be something written into that Trust , that I can't see ? 

My dad always hinted that he would put a clause in preventing her from cohabiting   but the will doesn't mention anything about that (could a trust have things like that written ?)

SusieT

I am in a similar sort of situation, in that I am (supposedly) a beneficiary of a trust. I do not know the full details, but am aware that it is "split" between me and my sibling, and the spouse can remain there for life - however, if the spouse should move, marry or cohabit with another partner, then the trust reverts to me and my sibling only. Is it possible that the trust your father set up has a similar condition, and possibly one stating that if she moves home she will lose out on any equity in the house, or, is not allowed to secure a loan or mortgage on this or nay future property? 
I think you need to speak to a solicitor who is experienced in these trusts, and would most certainly not sign anything at all that would mean a new trust was set up, as that sounds very much as if it will not be to your benefit.

DerbyBorn7

Thanks Susie...interesting. 

So we know from the will she can sell and move....but the marry or cohabit bit you mention , is that written in the will you have seen ? Or the Trust you have seen ?

If that marry or cohabit clause, if exists...we are yet to see it...I wonder if the trust has this ? Or is the place it can exist ?

TripleH

The trust document would have all the details in and include any clauses or grounds to dissolve the trust.

From the limited few trust deeds I've seen, they can vary so 1 trust might have terms another doesn't.

As per SusieT, sign nothing without seeking independent legal advice from a solicitor of your choosing no matter what pressure is put on you.

sammyjammy

It would be unfair if the trust carries over when there is a third party involved, this man could live thirty years after she dies leaving the OP waiting indefinitely for their share.

Its time ot spend some money on a solicitor I think, they can get a copy of the trust and you'll know what you're dealing with.

GDB2222

DerbyBorn7 said:

Thanks Susie...interesting. 

So we know from the will she can sell and move....but the marry or cohabit bit you mention , is that written in the will you have seen ? Or the Trust you have seen ?

If that marry or cohabit clause, if exists...we are yet to see it...I wonder if the trust has this ? Or is the place it can exist ?

You are asking specific questions about your trust that can only be answered by reading the will. Your best bet is to find a solicitor, preferably a member of STEP, who can advise you. There is likely to be a substantial fee involved, but now is the time to get advice.

Very much second best is for you to copy out the entire will (omitting names), so that people here can give their views - bearing in mind that you can't rely on advice from a bunch of amateurs on a public forum.

DerbyBorn7

The will just says properly goes to me when trust period ends ...so when she dies.
Nothing else clause wise.

But people here kindly commenting have confirmed the existing trust 'might' have further clauses in....which could explain why now the sudden need to draw up new trust , and also could explain why some sales have collapsed due to the trust itself. 

GDB2222

DerbyBorn7 said:

The will just says properly goes to me when trust period ends ...so when she dies.
Nothing else clause wise.

But people here kindly commenting have confirmed the existing trust 'might' have further clauses in....which could explain why now the sudden need to draw up new trust , and also could explain why some sales have collapsed due to the trust itself. 

What does it say about when the trust period ends?

DerbyBorn7

Says when the trust period ends. The trustees pass the property to persons named in the last part of will, which my dad names me.

doodling

Hi,

The gift of £100k is nothing to do with your inheritance under the will but is simply down to the generosity of your father's wife.  You can ignore that when discussing the trust.

Assuming that probate has been obtained after your father's death then the will is a matter of public record and can be searched for on the UK gov website.  It is worth reading the will because it may clarify how any costs associated with moving house / downsizing / etc. are dealt with.

In general these trusts will run for the life of the beneficiary of the trust (but not beyond).  This means that as soon as your father's widow dies then you are due the money from the trust (give or take several months for the sale to be arranged and her husband to move out / buy out your share without undue haste).

What you need to do is ensure that when the house is sold and the new house is bought, the ownership is correctly split so that the trust owns a proportion of the new house equivalent to 60% of the value of the old house - how the remainder is split between you father's widow and her new husband is not of any concern to you.

To be honest, I wouldn't worry too much about who the trustee is (unless you know that they are dishonest), providing that the ownership by the trust is recorded at the land registry then you are reasonably protected.  I would however sign up for notifications from the land registry just so that you can see if anything changes.

As others have said, the fact the your father's widow's new husband will become a part owner of the new house is unusual and for that reason I would suggest that it is essential that you get legal advice from a STEP qualified solicitor.  There is a risk that the trust will have difficulty getting him to leave the new house if his wife dies and I would want to understand how things would work if that happened.

I would not sign anything at all without seeking legal advice.

As others have said, you may want to consider the option of dissolving the trust for a lesser sum than you would be entitled to on your father's widow's death - this is however only appropriate if you need the money now, otherwise I'd expect the trust to continue (with the same value) despite the house move.