Rent on property

Frostarge

Hi all 

I'm the executor of mams will.   In her will she allowed my brother who was still at home to stay in the property for upto 10 yrs.  It states he nust pay all bill and maintain the house.

Can the estate charge him rent on the property for the 10 yrs. 

sammyjammy

If that is how the will is written then I read it as your mum intending him to live there rent free.

FlorayG

There is a type of rent free tenancy that requires to tenant to be responsible for all the maintenance and upkeep of the property; sorry I can't remember what it's called, but it means that living there rent free means the landlord (owner) does not have to be responsible for the building safety and legal compliance. This is probably what your mother meant. If you charge rent you become a 'normal' landlord with all the heinous responsibilities therein @theartfullodger probably knows the type of tenancy I'm trying to think of

poseidon1

More to the point, and should be uppermost in your mind is what is your brother supposed to do at the end of this decidedly odd 10 year period of rent free occupation?

This sounds like a recipe for future sibling strife which I certainly wouldn't want to be lumbered with.

Olinda99

what ***exactly*** does the will say ?

Keep_pedalling

Your mother’s will has created a life interest trust. Despite the name such trusts can be created for a set period, although doing that is not that common.

Legal ownership sits with the trust and your brother is the beneficial owner for the next 10 years or until death if he dies before the 10 years is up. He does not have to pay the trust during that period. You and any other siblings are remandermen and don’t actually inherit until the trust is wound up.

Is there any reason your brother has been given preferential treatment to the rest of you? 

Frostarge

It states in the will that i am appointed the executor and trustee,  the section about my brother states,   The beneficiary (his name )
 " the trust period means the period of 10 yrs after date of death. 
(B) I give my house on trust to sell it subject to always to sub clause (C) 
*C) during the trust period  my trustee shall not sell my house except with the beneficiary written consent. 
(D) the beneficiary shall pay all outgoings in the respect of my house. 

Frostarge

Keep_pedalling said:

Your mother’s will has created a life interest trust. Despite the name such trusts can be created for a set period, although doing that is not that common.

Legal ownership sits with the trust and your brother is the beneficial owner for the next 10 years or until death if he dies before the 10 years is up. He does not have to pay the trust during that period. You and any other siblings are remandermen and don’t actually inherit until the trust is wound up.

Is there any reason your brother has been given preferential treatment to the rest of you? 

Myself and my 2 other siblings all have families and our own homes.  He has failed in his marriages, relationships and work and doesn't have anything. 

Frostarge

poseidon1 said:

More to the point, and should be uppermost in your mind is what is your brother supposed to do at the end of this decidedly odd 10 year period of rent free occupation?

This sounds like a recipe for future sibling strife which I certainly wouldn't want to be lumbered with.

Yea we all agree.   I had suggested to tell the house and get him setup in a home of his own  at the age of 58,  rather than haven't to start at 68. Unfortunately the relationship with said brother is not harshly and has not been for many yrs with us all.

Keep_pedalling

i think you are going to have a major headache in 10 years time.

What is the value of the house? If it is substantial there may be IHT consequences as well.

Frostarge

Keep_pedalling said:

i think you are going to have a major headache in 10 years time.

What is the value of the house? If it is substantial there may be IHT consequences as well.

Oh yes we are all well aware he will have no intentions of leaving in 10 yrs.  

The house as it stands is worth around 70k to 80k