Living trust will, changing it to discretionary trust

Blueb123

Just looking for advice, or where to start, it’s been an emotional rollercoaster, mum had a living trust will, and tennents in common with my stepdad, living her 50 % of the estate to me (25 %) brother (25%) sister (50%). Mum passed away dec 23. We all signed TR1 forms to put us on the tittle deeds of the property, and declaration of trust , was told these could not be processed until probate is complete so to undate them. Probable was granted oct 24, and the my step dad decided to sell the property and downside, which he was allowed to according to the living trust will. The problem then arises where he does not put us down as tennants in common on the new property, it’s just in his name, and the capital gained from the sale of the house went into his bank account, not into a trust as stated in the will. This man has been my step father for over 40 years. Conversation we’re had, but as you can imagine the relationship has now broken down, accused of only been concerned about the money, when we just wanted him to correct the mistakes that had happened somewhere along the line. We’ve had to seek out legal advise from a contentious probate solicitor, my stepfathers solicitor has now approached us with an offer to take 25% of the sale price of the property he has with my mum now and dissolve the living trust will. I have mixed thoughts and emotions on what to do , 
the options I see are, I know I should seek further / legal advise, but my solicitor charges £270 an hour, so just trying to get more information and use my time with him Wisely. 

- refuse the offer and asked to be put onto the deeds of the new property as I should have been.

- I would like the money to stay in trust for me and my children, can I move the money into a discretionary trust ?. 

And if so could I set this up by myself ? Just trying to reduce legal costs any way I can, we’ve already paid a lot out over this. 

- my brother is wanting to accept his 25 % of the offer. 

Thank you 

Keep_pedalling

You mother’s will created an immediate post death interest trust but it seems this has been mishandled as it does not make you joint owners of their home so the action of making you all TiC was not the correct thing to do. 

If you decide not to take the offer the a portion of the new house stays in trust, and depending on the terms of the will any equity released goes to the remainder men ( you and your siblings)  or stays in trust with you step father entitled to any income from it.

You and you siblings need to toke professional advice on how to proceed, so preferably from a STEP solicitor with expertise in trusts.

RAS

As K_p says, this is an Immediate Post Death interest trust so the will left mum's 50% into trust and the TR1 forms were inappropriate. Step-dad may have responded to this by selling up pronto.

Half the value of the sale should have been placed in trust, to be inherited by you and your siblings when he dies.

It may be that he got someone else to act a trustee rather than any of you so he could have effect the sale?

Are you sure he hasn't setup the trust on the new house? Has the ownership of the new house actually been registered yet by the Land Registry?

You can check on their website. If it's still in the seller's name, make sure you tell the STEP solicitor. But do see one as there seems to be a lot of misunderstanding. 

poppystar

Just to be clear - your step father has offered you, your brother and your sister the amounts exactly as you would have inherited down the line when step father passes? Ie 12.5%, 12.5% and 25% respectively of the actual value he got from the sale. (25%,25%&50%of mother’s half). 

If that’s the case then you would be no worse off getting this inheritance now rather than in x years down the line. It sound also that step father would be happier having the matter settled now. So why would you rather create some other trust with the costs that might entail? 

Not to mention the costs now of going down a contentious route when it’s not clear step father has done anything wrong.