Life interest trust help

mossy26

Thank you, this is helpful, I do think the DOV is likely the best way to do this, but given the personal circumstances of my step mother currently, it's not realistic to even suggest this pre probate.

mossy26

https://forums.moneysavingexpert.com/discussion/comment/81917104#Comment_81917104

Can the trust and my stepmother be tennants in common, or does it need to be either solely in her name or the trusts? Or is there another option altogether?

poseidon1

Time to step back a moment and consider the matters you can progress without further delay or discussion.

The situation whether or not the trustees should ( eventually) register as co owners of the property with your stepmother ( as tenants in common) is not a pressing or urgent matter.

It would certainly be a good idea as a belt and braces approach to protect your interest as the ultimate beneficiary of the 50% property share during your step mothers lifetime, but there is a half measure approach which would simply be a land registry Form A Restriction on title preventing your stepmother from any dealings with the property without reference to the trustees. In any event it is a matter that can be addressed after you have obtained probate. No need for anyone to stress about that issue for the moment.

By the same token, whether or not to execute a DOV to take the NSI bond out of the Will trust, you have up to 2 years after father's death to deliberate and decide whether to do so.

What is pressing is for NSI to recognise your status as executor in order to take your instructions as to what will eventually happen to the NSI bond.

Because of the quantum involved ( £75k), it's almost certain NSI will require you to obtain the grant of probate , before accepting your instructions as to the eventual destination of the bond. Accordingly in my view your focus must be to move forward with Probate as a separate and distinct activity unaffected by your ruminations over matters related to the future operation of the trust.

Should you all decide to keep the NSI bond intact as an ongoing trust asset, NSI will require a formal application form completed with all the relevant details pertaining to the trust - see form link below

https://www.nsandi.com/files/asset/pdf/income-bonds-application-form-trustee.pdf

mossy26

https://forums.moneysavingexpert.com/discussion/comment/81917745#Comment_81917745

Thank you, this is incredibly helpful and clear, and very good advice.

I am going to focus on the probate side of things, and reassure the trustees that there is no rush for them to make any decisions right now.

I feel confident that I can manage the probate myself, there doesn't seem to be any reason that the trust would make this more complicated, as that is clearly a separate issue, and needs probate to be completed first.

Thank you everyone for your kind and patient advice, in a particularly stressful and sad time.

Land_Registry

https://forums.moneysavingexpert.com/discussion/comment/81917363#Comment_81917363

It can be a complex scenario to deal with and I would rely on the posts of others with regards where the 'best' advice might be sought.

We register the legal ownership and any applications to update same. We are not privy to the family/trust arrangements around the beneficial ownerships and therefore don't need to be informed as to the 'why' when people apply to update the legal ownership for example. And we can't offer legal advice.

Reading poseidon1's post above I would add the following simply from a registration perspective as I do appreciate their post is from a much wider stance for the reasons I mention

I agree that whether or not the legal ownership is transferred is not a pressing or urgent matter. The trust/beneficial ownerships are protected by the form A/joint ownership restriction as mentioned.

Probate is not required for your late Father with regards the property but do appreciate it maybe needed for dealing with his estate

The form A restriction does what it says in the wording, prevents the surviving joint owner, your step-mother, from for example selling the property on her own. She could however appoint someone else to act with her, and that doesn't have to be the trustees, and together they sell. The sale/purchase monies are in effect the beneficial ownership and it is those monies that your late Father's beneficiaries can claim a share in. That claim/resolution can all come after a sale for example and that maybe what 'reference to the trustees' means in poseidon1's post.

Not looking to challenge poseidon1's views but it would be good to understand more about what 'reference' might be required?

So the three main options that exist often include doing nothing re the registered information; updating the register re the death alone; or transferring the legal ownership into new joint names - ultimately the key is ensuring that all affected parties understand how the legal and beneficial ownerships work, how the trust created remains in play and is protected and what happens next for example should your step-Mother die, wants to sell/remortgage and so on. That is where your legal advice must come in and I would encourage you and your step-Mother to share in that discussion/advice as well so that you are on the same page.

MSE regulars often refer to using a STEP - a Trusts and Estate practitioner specialising in such matters. And I have never seen anyone post that as being poor advice. Doubtless your late Father and step-Mother sought similar advice when they created the trust arrangement concerned and may have also covered the 'what can and should happen next' scenario should one of them die