Changing the share of a property left in a will trust

RAS

I suspect some family need to be more realistic.

How much does mum's nursing home cost currently? Would the house rent for more than that? Bearing in mind that meeting the costs of being a landlord are high and the whole income (less repairs)will be taxed at the going tax rate.

Unless she's got a lot of other savings to cover the next few year's costs, the upfront fees would also be a burden on her finances. Landlords are currently bailing out of the market because of the costs and legal issues. Don't for one minute think that the attorneys can rent it to family and expect them to vacate as convenient, whatever might be said now. They can't out source their liability for legal compliance.

There will be a financial assessment unless mum is self-funding and the LA will expect the property to be liquidated promptly if you need their help to cover the fees prior to the sale.

Some families have a family member keep an eye on the house in exchange for paying utilities and CT but you'd need to get cast iron documentation regarding the end and know that all family members will enforce it.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81958839#Comment_81958839

Others have already counselled against the landlord option for the continuing trust for your mother.

However I fear you did not understand aspects of my post, so I dispel (again) your concerns about the house trust having any adverse implications for the children/grandchildren in terms of first time buyers status or 2nd property stamp duty.

None of the beneficiaries entitled on your mother's death are 'current 'owner's of the property at this time.

For property law purposes your mother is the deemed beneficial owner of the entirety of the freehold interest. Your trusteeship, does not in anyway confer any beneficial interest on you in the property whilst your mother is alive. This is a fundamental principle upon which life interest trusts are based, you should therefore cease having concerns in that direction.

Hopefully you did note the future trust HMRC compliance obligations you will be bound by, also covered in my post.

Suggest you get professional advice ASAP to help cement your understanding of how this trust now affects and dovetails with your duties as POA . You will be wearing two different legal hats here, and you may struggle to make the distinction.

dummydaydream

https://forums.moneysavingexpert.com/discussion/comment/81959140#Comment_81959140

Thanks again for your input. I realise I was worry unnecessarily about one thing while being totally unaware of the real challenges to come. I have noted the requirements to register the trust. I have looked at the local council guidance and there will be a new 12 week property disregard from the date of dad’s death, which gives us some breathing space before finalising a new financial assessment. There is the option to enter into a DPA with the council, which could be useful if the house doesn’t sell quickly. I might have a battle on my hands to convince my other siblings but thanks to everyone’s clear advice I think I’ll be able to win them round.