Will Trust , what sort of trust is it and is IHT due ?

Pumpkinqueen21

Hi Keep Pedalling, I don't know how we can prove this as it was a verbal agreement even though we kept receipts, but as the house is the only asset , the solicitor says there is no way to get it back as all the money and the only asset is tied up in the house. Even though it can be seen from the draft of the newer will that was never signed, the solicitor says the only way we can physically get our hands on physical money is by dissolving the trust, and then everything automatically goes to the beneficiary and we risk losing our lifetime tenancy too. Whilst the trust  and the way it was written provides us with a rent free living situation, that would be jeopardised if the trust were challenged. It really ties us up in so many ways, which is why the family begged her not to do it. But for some reason in the end , she reneged on the new will idea and we are where we are. 

poppystar

If all the family were in agreement on the newer Will is there a reason why a Deed of Variation has not been considered? I assume that may be because to change to, say a 50% split of the estate, where it is all tied up in the house, would effectively make you homeless albeit with some money. At present you have a roof over your head but are very tied to the house for the future. In the same way your sister/nephew currently have no access to the estate and are unable to take any benefit from their inheritance. 

Keep_pedalling

I don’t think you are getting the best advice from this solicitor. 

Regardless of lack of documentation you provided your mother with a loan and you have a number of options. 

1. Sell the house, take your money and distribute the rest appropriately.

2. Get you sister and nephew to make a deed of variation as per poppystar’s post

3. Have the house transferred to the trust but with a charge against the property protecting your investment.

If your nephew is an adult 2 is the best option as the deed of variation effectively changes the will and the trust will never have existed. Are they actually aware of the mess your mother has left and willing to go with the terms of her unsigned will?

poppystar

Keep_pedalling said:

I don’t think you are getting the best advice from this solicitor. 

Regardless of lack of documentation you provided your mother with a loan and you have a number of options. 

1. Sell the house, take your money and distribute the rest appropriately.

2. Get you sister and nephew to make a deed of variation as per poppystar’s post

3. Have the house transferred to the trust but with a charge against the property protecting your investment.

If your nephew is an adult 2 is the best option as the deed of variation effectively changes the will and the trust will never have existed. Are they actually aware of the mess your mother has left and willing to go with the terms of her unsigned will?

I’m wondering if the fact that they were living in the house, possibly rent free, might make it difficult to prove it was a loan. Maybe it could be seen as in lieu of rent? I don’t think from the opening post that OPs mother was to take out the equity release - I read it as OP intending to do that after his mother had died and once the house was his - so not a loan from her point of view potentially. Although if he had then used the released money to give an inheritance to the sister the situation would be much the same as now unless the equity released property was then sold.