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Will trust, can the money be given out now?
housebuyer143
Posts: 4,299 Forumite
My grandad died 3 years ago and left his half of the house in trust for his two daughters with a life interest for my nan. My nan is now wanting to sell and move to a new property, which is fine.
The question we have is the place she is buying is half the value so are my mum and her sister able to have their half of the estate once she moves or will it need to be held on trust until my nan dies?
The solicitor seems to suggest the latter but it makes no sense that the money is stuck in trust when my nan cant have it and my grandad is dead so the money is just sitting there waiting for them.
Any suggestions as to whether the lawyer is correct here?
The question we have is the place she is buying is half the value so are my mum and her sister able to have their half of the estate once she moves or will it need to be held on trust until my nan dies?
The solicitor seems to suggest the latter but it makes no sense that the money is stuck in trust when my nan cant have it and my grandad is dead so the money is just sitting there waiting for them.
Any suggestions as to whether the lawyer is correct here?
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Comments
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You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.
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That's fine if they have to, it would be on a very small amount if anything as not much increase in the last few years but if they can't access the money for another decade, and capital gains is due, when would they need to pay it?dimbo61 said:You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.0 -
No they won’t the beneficial owner of the house is still the OPs Nan and all of it is part of her estate and none of her husband’s IHT allowances are still transferable to her estate. The terms of the trust will depend on the wording of the will, often the spouse will still be able to benefit from any income generated by cash in the trust.dimbo61 said:You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.3 -
Ah I see. That could potentially be the reason then that they can't have it, as the interest might be payable to her while it's in trust.Keep_pedalling said:
No they won’t the beneficial owner of the house is still the OPs Nan and all of it is part of her estate and none of her husband’s IHT allowances are still transferable to her estate. The terms of the trust will depend on the wording of the will, often the spouse will still be able to benefit from any income generated by cash in the trust.dimbo61 said:You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.
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If they all agree, they could end the trust. They would need to obtain an actuarial calculation of the expected interest that the trust would expect to gain based on the life expectancy of Nan, the remaining money could then be given to the daughters.housebuyer143 said:
Ah I see. That could potentially be the reason then that they can't have it, as the interest might be payable to her while it's in trust.Keep_pedalling said:
No they won’t the beneficial owner of the house is still the OPs Nan and all of it is part of her estate and none of her husband’s IHT allowances are still transferable to her estate. The terms of the trust will depend on the wording of the will, often the spouse will still be able to benefit from any income generated by cash in the trust.dimbo61 said:You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
Ok. The nan doesn't want it and is happy for them to have it so I will ask that they suggest this to the lawyer. Thankssilvercar said:
If they all agree, they could end the trust. They would need to obtain an actuarial calculation of the expected interest that the trust would expect to gain based on the life expectancy of Nan, the remaining money could then be given to the daughters.housebuyer143 said:
Ah I see. That could potentially be the reason then that they can't have it, as the interest might be payable to her while it's in trust.Keep_pedalling said:
No they won’t the beneficial owner of the house is still the OPs Nan and all of it is part of her estate and none of her husband’s IHT allowances are still transferable to her estate. The terms of the trust will depend on the wording of the will, often the spouse will still be able to benefit from any income generated by cash in the trust.dimbo61 said:You mum and her sister ( your auntie ) may end up paying Capital Gains tax if the property has gone up in value in the last 3 years.0
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