Lifetime ISA and house in trust

fansomerset

I have inherited 50% of parents house when my mum died which is held in a discretionary trust. My dad is entitled to live in the house until he dies.

Can I still use my Lifetime ISA to purchase my first home, even though I have 50% share of parents home in a discretionary trust.

xylophone

You say that you have inherited a half interest in the property.

You then say that this interest is held by a discretionary trust.

Please can you explain the exact situation/quote the exact wording of the will?

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/6660131/lifetime-isa-and-house-in-trust

Are you sure this is a discretionary trust? The normal arrangement is for the will to create an immediate post death interest trust, which certainly would not impact your ability to use your LISA.

poseidon1

I would suggest the only reason why this could be a discretionary trust established from the mother 's half share, is if the will was executed long before October 2007 when the transferable nil rate band was introduced.

Prior to the transferable NRB, nil rate band discretionary trusts were often created to use up a deceased spouse's NRB that would otherwise be lost on 1st death.

OP if this is indeed a discretionary trust or even a life interest trust for your father, either way you have no beneficial entitlement in the property whilst your father is still alive, so you still qualify for the benefits accruing to first time buyers, assuming you have never previously acquired your own property at any time.