Discretionary Trust
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keef-WhatStandards
Posts: 286 Forumite
In 2013 I was forced out of my family home after the death of my mother
and my father having to go into a care home, despite my father's care
being paid from his pension and the balance from an insurance policy.
Following the death of my father in January 2016, my sister and I are
still awaiting the settlement of my parents trust.
The Solicitors have told my sister they can hold on to the funds for upto
125 years.
My parent's letter of wishes clearly intends for my sister and myself to
benifit from the Trust. At what point did this change and the benifit pass
to the solicitors and decendents as clearly neither my sister or myself
will be around in 125 years!
and my father having to go into a care home, despite my father's care
being paid from his pension and the balance from an insurance policy.
Following the death of my father in January 2016, my sister and I are
still awaiting the settlement of my parents trust.
The Solicitors have told my sister they can hold on to the funds for upto
125 years.
My parent's letter of wishes clearly intends for my sister and myself to
benifit from the Trust. At what point did this change and the benifit pass
to the solicitors and decendents as clearly neither my sister or myself
will be around in 125 years!
Keef - Sheerness, Kent UK
0
Comments
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keef-WhatStandards wrote: »In 2013 I was forced out of my family home after the death of my mother
and my father having to go into a care home, despite my father's care
being paid from his pension and the balance from an insurance policy. Why? Who exactly forced you out and on what grounds?
Following the death of my father in January 2016, my sister and I are
still awaiting the settlement of my parents trust. Who are the trustees and what are the terms of the trust? Who drew it up - the solicitors you refer to in your next sentence? Did the trust come about under the terms of your father's will or is it an entirely separate trust?
The Solicitors have told my sister they can hold on to the funds for upto
125 years. Just because they can doesn't mean they will. Have you asked them what the delay is and why winding up the trust isn't being progressed?
My parent's letter of wishes clearly intends for my sister and myself to
benifit from the Trust. A letter of wishes is just that: wishes. It isn't binding on trustees, but it's hard to see why nothing has happened since your father's death At what point did this change and the benifit pass
to the solicitors and decendents as clearly neither my sister or myself
will be around in 125 years!
Sounds like you need to get advice from an independent solicitor.0 -
keef-WhatStandards wrote: »In 2013 I was forced out of my family home after the death of my mother
and my father having to go into a care home, despite my father's care
being paid from his pension and the balance from an insurance policy.
Whoever looked after his affairs potentially acted correctly. For it to be in your father's interests to have you remain there, you would have needed to pay rent at a commercial rate. Even if he didn't need the money to pay for his care, his attorneys (or whoever looked after his affairs) had an overriding duty to act in his interests which applied to all his affairs, not just his care costs.
Who exactly are the beneficiaries under the trust and what are the powers of the trustees? You will need to look at the Trust Deed.Following the death of my father in January 2016, my sister and I are still awaiting the settlement of my parents trust.
The Solicitors have told my sister they can hold on to the funds for upto 125 years.
My parent's letter of wishes clearly intends for my sister and myself to benifit from the Trust. At what point did this change and the benifit pass to the solicitors and decendents as clearly neither my sister or myself will be around in 125 years!
If you and your sister were the only potential beneficiaries you could wind up the trust, assuming you are both over 18 (in England and Wales) and compos mentis (known as Saunders v Vautier). However your reference to "descendants" suggests other beneficiaries.
Letters of wishes are not binding. If the trustees have discretion as to which beneficiaries receive the money, they don't have to pay you anything. Unless you can apply Saunders v Vautier.0 -
Thanks for that. My sister and I are the only beneficiaries, bar a couple of hundred pounds to a charity.
I'll look into winding up the Trust.Keef - Sheerness, Kent UK0 -
Was this trust set up by your parents, your grandparents or even further back?
A letter of wishes to advise the trustees of a trust you have set up is normal practice, but is not binding on the trustees. A trust set up by an earlier generation could have a lot more potential beneficiaries and how this is distributed is entirely down to the trustees.0 -
Trust set up by Parents.Keef - Sheerness, Kent UK0
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keef-WhatStandards wrote: »Trust set up by Parents.
Was this set up by one of those companies that get you along to a seminar then scare you into taking out a trust that supposedly avoids IHT or care cost by any chance was it?
They charge fat fees and appoint themselves as trustees, to what is basically a pointless trust lumbering their children with situations like you now find yourselves in.0 -
Why? - I was told my permission to live there died with my parents.
Who? - A solicitor acting for the Trustees.
The Trustees are a solicitor and his son. The Trust was drawn up by this solicitor and came about on the death of my parents.
My sister has requested they settle in full, but have only paid a fraction out to her.
I understand a letter of wishes isn't binding, but, like you I see no reason why this isn't being honoured.Keef - Sheerness, Kent UK0 -
Not exactly, but it is beginning to look like a scam, especially as the SRA have no record of either Trustee being a solicitor!Keef - Sheerness, Kent UK0
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Make a complaint to the SRA - now: https://www.sra.org.ukGoogling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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keef-WhatStandards wrote: »Why? - I was told my permission to live there died with my parents.
Who? - A solicitor acting for the Trustees.
The Trustees are a solicitor and his son. The Trust was drawn up by this solicitor and came about on the death of my parents.
My sister has requested they settle in full, but have only paid a fraction out to her.
I understand a letter of wishes isn't binding, but, like you I see no reason why this isn't being honoured.
I am puzzled why a discretionary trust was set up on the death of your mother. It is quite common, and sensible, to have a life interest trust set up after the first death, but a discretionary trust does not seem appropriate.
Have you taken independent legal advice on this?0
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