House in Family Will Trust. Are they rare? How to sell?!!!

[FamilyMatter2020]

Can anyone help? Did anyone here find that a family home was in a Will Trust (under the Settled Land Act) and harder to sell while the life interest occupier is still alive?

Surviving family member no longer has capacity (Alzheimer's) and is cared for and no longer at home. House is falling down and needs to be sold.

Her children have Enduring Power of Attorney (registered) & have been dealing with her Property & Financial affairs.

Many many solicitor's letters on how to sell the house are vague. Applying to a Court of Protection or appointing a Deputy to oversee a sale has been suggested. Apparently Trusts under the Settle Land Act are rare.

Any advice? Posted in legal, but no replies.

Just bumping this for you because I am interested in this too.

I think My Aunt has done this. I believe it was set up originally
some time ago to avoid inheritance tax before the limits were raised. Apparently it also means that the house cannot be sold to pay for care home fees. My Aunt now lives alone with no close family nearby. I think she will need some sort of care package in the near future. It’s not my place to get involved but my cousin (her son) doesn’t seem to be very switched on.

Hi Belindabelle Thank you so much! There must be other people who've already been through this. I'm sorry your Aunt and son are in this position too. It's complicated.

I think you're correct, I was also under the impression this was a side step around inheritance. Family member was adamant the house should go to beneficiaries, however the finer details of the will aren't that clear. It's been a headache to sort tbh.

I can see the solicitor's fees racking up over this 'rare' Trust and how to sell the house. It's looking like Court of Protection is the only route to 'break' the trust early.

I've found this pdf on fees
www.gov.uk/government/publications/court-of-protection-fees-cop44

Best of luck with finding answers

All I know is that setting up a trust like this was all the rage about 25 years ago amongst people who had a bit of money. I remember my Dad discounting the idea out of hand as not for the likes of us but my Aunt and Uncle always had a few bob.

I think my Uncle, Aunt and Cousin were all trustees and when my Uncle died his share was divided between my Aunt and Cousin but I am really not sure.

My MIL was looking into some sort of protected trust but I think the set up fees put her off.

Gah, it's all so confusing

Interesting you say that. This will was written in the 70's & there definitely wasn't any family money about! Maybe it was advised in the hope of protecting the little bit they did have?

It might backfire if it needs to be sold before the death of the Life Interest tenant though. A general Google shows it's tricky & expensive to end the trust early & you must show evidence that the tenant will not require the funds.

OP It could be different for the various parts of the UK and other parts of the world. It might be an idea to give the country in which the property is.

My DF did this before he died. My DM is still alive, but the terms of the trust state that the house can be sold if necessary, but another property must be purchased which will the go into the trust. My DM is a fritterer and I'm glad Dad sis do this otherwise the house would have gone long ago. I don't know if it's possible to break the trust though OP.

It's in the UK @TheBouquets. South East.

That's interesting @DivisionBelles. Good that your DF's planning has saved the house. These relatives were pretty frugal. Guess they thought this was a good financial move.

There is nothing in the will here about purchasing another property. Or moving. Or what to do in event of the tenant for life not having capacity. Only that the house needs to be sold within 12 months of the death of tenant for life. Hence the decision to sell rather than rent. House far from rental-ready & Life Tenant is still paying all the bills despite not being there.

Mm. Still not found solutions for this. One solicitor is saying Court of Protection must be applied to.

Another solicitor is saying that as the Life Tenant does not have their name on the deeds then a Court of Protection is not needed.

Has anyone else found that different solicitors give you different answers?

Would you instruct a completely different solicitor independent of these two to proceed?

Could get ££££. Which is exactly what my family member was trying to avoid.