Will Trust

SeaViewValley

My mum and dad put their joint belonging and house into a will trust with one of the most expensive solicitors in the area acting as executors and trustees. A month later and my dad has died and my mum cannot explain what she has signed and wishes she hadn’t signed it. Is there anything she or I can do? Also the executors are asking for all joint accounts but the original form requested only dad’s sole accounts. I am worried their high costs will wipe out the value of the house which mum might need for care costs.

FlorayG

As I understand it, a will trust only concerns the half your dad owned. It means that your mum has the use of it until she dies and this also means that the value of that half can't be used to asses her assets for care costs if she needs them - so might be useful. Presumably it has been left to a third party? Which would be why the trust was set up, so that your mum can't be made to move out of her home by whoever that third party is.
As an aside, if your mum really didn't understand the document she was signing then you may have some comeback on the solicitors because it's their job to explain things and be sure you understand before you sign

SeaViewValley

Thank you. She was asked to sign something earlier this week with the info I one side and the signing but overleaf. She is very visually impaired, very hard of hearing and frail but when I asked her what she had signed she said she didn’t know and I am worried. Also I am worried they seem to be asking for more information than maybe is normal for private. The solicitor is the trustee so I am worried about costs but does that mean when the time comes the house goes to the solicitor?

gwynlas

If your mother is having these problems then someone needs to apply for lasting power of attorney.
Are you an only child?
Have you read the documents and understand the set up?
The solicitors costs should be straightforward and whartever work they do should not add up to the value of a house.

Keep_pedalling

It is quite a common thing to due as far as the house is concerned but putting all his liquid assets into it as well is not and is usually a very bad idea as it requires a lot more managing and can be expensive. It may be possible to to avoid that part by making a deed of variation by the eventual benefices of the trust A life interest in their home will not require any ongoing management or significant costs.

The executors will need visibility of all his assets (including joint ones).

FlorayG

SeaViewValley said:

Thank you. She was asked to sign something earlier this week with the info I one side and the signing but overleaf. She is very visually impaired, very hard of hearing and frail but when I asked her what she had signed she said she didn’t know and I am worried. Also I am worried they seem to be asking for more information than maybe is normal for private. The solicitor is the trustee so I am worried about costs but does that mean when the time comes the house goes to the solicitor?

It should state in the will to whom it is left. The trustee CAN be the beneficiary but doesn't have to be ( and usually isn't). A trust will should say ( I'm paraphrasing in simple terms) something like " I leave everything I own to my son/daughter but my wife has it in trust to live in until she dies" and the trustees job is to ensure that happens

tls123

Surely if your mum is visually impaired won’t legal documents need a signature of a witness as you say she can’t read what is on the form can you not approach the solicitors to explain the situation. She sounds vulnerable with the recent bereavement and her being hard of hearing and visually impaired. Solicitors have a duty of care to clients you can raise concerns with the solicitors. Also does you mum trust you to help with these sorts of matters if so if you have not already discussed it would be opportune to discuss power of attorney. 

p00hsticks

SeaViewValley said:

 Also the executors are asking for all joint accounts but the original form requested only dad’s sole accounts. 

Sorry for your loss. 

If they are acting as executors for your dad then they will need to know about any joint accounts as well as his sole ones.

Although the contents of the joint accounts will automatically pass to your mum, half the value at the time of his death will fall into his estate for probate purposes. 

poseidon1

SeaViewValley said:

My mum and dad put their joint belonging and house into a will trust with one of the most expensive solicitors in the area acting as executors and trustees. A month later and my dad has died and my mum cannot explain what she has signed and wishes she hadn’t signed it. Is there anything she or I can do? Also the executors are asking for all joint accounts but the original form requested only dad’s sole accounts. I am worried their high costs will wipe out the value of the house which mum might need for care costs.

OK here is something to consider. Are the terms of the trust on your father's death;

1) Spouse to have a right to occupy his half share of home for life.
2) Spouse to have right to enjoy the income of his liquid assets for life
3) On spouse's eventual death,  father's assets in 1) and 2) devolve to children absolutely.

If so, and you are the only child ( I cannot see you answered that question ) and your mother is mentally competent despite her physical disabilities, then you and your mother can together bring the trust to an end in your mother's favour within 2 years of you father's death using a deed of variation and using Sauders v Vautier principles to do so. There are no IHT disadvantages in doing so.

However , bear in mind  by taking this course of action you take on full personal responsibility for taking care of your mother's financial affairs going forward, so an appropriate Lasting Power of Attorney will need to be put in place in your favour ASAP .

 Are you prepared to do this? I ask this only because you do not appear to have been involved at all with the Wills planning your parents undertook at  their advanced age and apparent  vulnerabilities (at least in your mother's case). 

Be that as it may, if  you and your mother are in accord with you fully managing  her affairs  and therefore breaking the trust,  the solicitor/trustees will be less than happy at the lost of future trust administration fees. You may  therefore need to be prepared for some opposition to this proposal and worse case scenario, may need to  get another firm of solicitors to prepare the deed of variation for you and your mother to execute. 

So action plan?

Consider how far you are prepared to take complete control and be responsible for your mother's financial well being going forward.

Discussion with mum to arrive at joint agreement to terminate the trust and there should  be no ambiguity about this. You should undertake personally research as to what is involved in winding up a trust using Saunders v Vautier - Google the case.

Both you and mum meet with the trustees to request termination of the trust and for them to prepare the relevant deed. If they refuse you must be prepared to take action via another solicitor.

Having said all the above and having regard to the questions you have raised which suggest you don't have a great deal of understanding of these matters, are there any other family or close friends who can help you navigate these issues? 

I do agree that solicitor's trustee administration costs will undoubtedly impact adversely on what your father has bequeathed ( depending on how long your mother survives), but you should also consider why your father thought it was more sensible for  stranger's to sit as trustees and manage an element of her financial affairs,  rather than his own child.