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

DerbyBorn7

I have obtained the deeds to the house currently, and it shows owners as my dads wife on there, and also my aunt as trustee of the will trust.

I can also see on the deeds this statement 'Restriction. No disposition by the proprietors of the registered estate is to be registered unless one or more of them makes a statutory declaration or statement of truth, or their conveyancer gives a certificate, that the disposition is in accordance with a declaration of trust dated  between [my dad]  and [his wife] or some variation thereof referred to in the declaration, statement or certificate.'

so, this does refer to the terms of the trust a must to be followed in order to sell (that I cannot see and have not been given?)

Does this mean that the trust does have restrictive terms in it? which could explain the previous sales going wrong and not going through? I take it that a convenient creation of a replacement trust prior to selling, would remove this restriction?

Thanks so much so far for your kind help and advice to all - if you are in derby I owe you a cuppa tea,

GDB2222

DerbyBorn7 said:

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.

I meant how does it define the end of the trust period?

You seem to think that there’s an extra trust document that says other things. That’s almost certainly wrong. Normally, the will establishes the trust and sets out all its terms. 

If you don’t want  to type it out, which I understand, you need to show the will to an expert. 

theoretica

My understanding is that having your name on the deeds rather than the trust would be a bad tax move.  It would bring you in for 2nd property stamp duty complications, and would mean you are liable for capital gains tax on the increase in value of your share when it is sold.  If it stays in trust I think it is counted in her estate for inheritance tax calculations.

It would be the simplest for all concerned if you are bought out now - but that would require her and new husband to be able to afford to do so.  Probably you accepting less than you think your share should be, and she paying more than she wants to!  I wonder about offering to accept a buy out now, including the 100k she gave you towards it, or saying that no, the trust was to continue and with your full entitlement.

DerbyBorn7

A solicitor says the will shows its a 'life interest trust' and the terms of the trust were set up 4 months after the will was written. 

What is in the terms of the trust is unknown but I was advised to ask to see the trust before signing up for anything new.

Was advised that being on the deeds of new home could bring more power IE forcing a sale. But can also bring with it difficulty getting her new husband to leave if she dies. With the current life interest trust , if she dies the monies apparently go to me.

So seeing this trust is still needed , to validate share on record and to see if any other conditions are in there.

dimbo61

" Helpful words "
So many details that you know and we don't.
The Evil step mum ( you did say she cheated on your dad ) but he still married her.
They bought a home together but instead of 50/50 and joint tenants they bought as tenants in common ! 60/40
Did the step mum own her own place before they met.
How long were they together ? 
Both working ?
Did your mum and dad divorce ?
So after your Dad died your step mum actually Gifted you £100,000.
Just in case I miss read that One Hundred Thousand Pounds ?
( " I thought this was kind ") as a deposit towards a home for you and your 3 children.
How much has it gone up in the last 2 years ?
Of course it was a GIFT because if it was a LOAN the bank would not have allowed it and you would have a much smaller deposit.
So what was the LTV ( Loan to Value ) with the extra £100,000 ?
Would you be in this property without the £100,000 ?

I would speak to a solicitor ASAP and a think Step mum needs to put the property on the market and pay you your inheritance.
She could sit tight for the next 30 years and take Equity Release, Loans etc out on the property to survive on.
Why does she need to sell if she has £150,000 sat in the bank ?

DerbyBorn7

Ref her 150k. Most probably spent. Cars and changes to the home and expensive lifestyle , which were not essential. 

She won't sell the house to settle it , why would she as its a life interest trust. as only owns a fragment of it, so will of course sell to live in a new bigger home with her husband. He'll own a fragment of the new home as will chip into the cost when she buys.

The gift did help me massively,  however,  my dad's life earnings are in that house and one bad move,  wrong signature could be an end result in this new husband sitting in a large house my dad's worked for, as opposed to it going to my family if she dies.. Where really that share could go to my children. Such a mess

If a current life interest trust exists...and I don't sign to agree to change it....i assume this 'rolls over " into new property still as a life interest trust , OR does it cease and a new trust 'must' take place which is just me on deeds ?

DerbyBorn7

if i refused to sign anything, does the current life interest trust my dad set up automatically roll over onto the new house, so the exact terms of that trust still apply, IE , if she dies, my dads 60% goes to me? (again I havent seen the current trust ) it's confusing as a new partial owner will exist on the new property she's buying.

 is it that for her to sell,- the old trust terms MUST dissolve (or is that optional?), and she cannot move or sell without having to absolutley dissolve the old trust terms? Or can she move / sell / buy without the existing trust being sigtned for to end and its terms just roll over ? Half of me feels like i am preventing a sale if i refuse to sign new one and being a problem for her, the other half of me feels i'm risking signing away current valuable terms.

canaldumidi

This is not my area at all,so a question:

Do beneficiaries of a trust have a legal right to see the terms of a trust? Can they force the trustees to produce a copy? Or are they held somewhere public (i suspect not) like wills?

DerbyBorn7

good question,

as the existing trust dad left is (allegedly ) set up for me. - if shes saying she wants to appoint a solictor to draw up a new trust (with consent of the executor / trustee etc) which changes things, where me, her and her new husband are on deeds as tenants in common (me 40, them 30 / 30) on the new house from selling the current one- then surely I am sensible and reasonable to request to see the existing trust, before signing anything?

is me asking to see that a bad thing, or sensible and reasonable given such a big proposal? She will have it (the existing trust) and so will my aunt, (my aunt doesnt speak to me though!)

for all i know, there are restricttions in that trust that are of importance?

GDB2222

You have lots of perfectly reasonable questions that can ONLY be answered by looking at the documents. I wish you luck.