What happens to a property trust should the survivor unilaterally decide to downsize to diminish his

Gobsh

Me and my wife want to set up a property trust leaving half of our property in trust for our son pending us both dying and leaving everything to him
I'm wondering
What happens to a property trust should the survivor unilaterally decide to downsize to diminish his half?

poseidon1

Gobsh said:

Me and my wife want to set up a property trust leaving half of our property in trust for our son pending us both dying and leaving everything to him
I'm wondering
What happens to a property trust should the survivor unilaterally decide to downsize to diminish his half?

The terms of such a trust should be comprehensive enough to cover foreseeable events such as downsizing or the survivor going into a home.

Therefore a properly drafted IPDI trust ( Google the term), would permit any surplus cash freed up after down sizing, to be invested to produce lifetime income for the spouse and a similar outcome if the property is sold in its entirety as a result of care home committal. The ultimate beneficiary ( your son) would therefore have an ongoing beneficial interest in the capital cash freed up for investment so he would eventually become entitled to a mix of cash and downsized property depending on future events.

Important to ensure the trust is not simply attached to the property you currently share, you must exercise a degree of foresight in considering potential  changes in future circumstances of the surviving spouse.

Incidentally I would add that such a trust should only only take effect and be embedded within  the terms of your respective wills. Needless to say seek the advice of a competent solicitor for this rather than an untrustworthy will writing company.

Keep_pedalling

You should really seek advice from a STEP solicitor with regards to making your wills. An immediate post death interest trust is more appropriate here, and the terms of the trust with regards to things like downsizing or what happens if the surviving spouse needs residential card can be covered in the terms set in your wills.