Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

Trust dispute

20 replies

ColonelOfTruth · 29/11/2022 20:14

Hello, I hope you can help, I find these legal matters utterly baffling.
I’m an only child and my mother died 4 years ago. She owned a house with her half-sister who is still alive (much younger). My mum contributed much more to the purchase of the property and so a deed of trust was drawn up. She also made a will which I have. My mum wanted to make sure that in the event of her death, her sister could stay in the house forever (and vice versa). They wanted to know the other would be looked after which is as it should be.
There is a Trust that was activated when mum passed. I am an executor and trustee. My mum told me that if my aunt sold the property, the proceeds would go into the Trust. My aunt could then use her portion of the sale to buy another property and if she needed, could use some of the remaining funds (for example, if my aunt didn’t have quite enough).
Before she died, my mum said she’d like my aunt to sell up eventually so that I could have some of my inheritance. This meant a lot to my mum as she knew it would change my life. Since mum died, my aunt said that even if she sold the house, I’d get nothing until she died. I think this is wrong and I’d get something.
does anyone know if my aunt is correct?
I don’t want to actually discuss this with her as it is such a sensitive topic.
Thank you for any advice or thoughts on this.

OP posts:
Spenn · 29/11/2022 20:21

I don't know if there are different types of trusts but in our case, the portion of house in trust transfers to a new house if the person in the house sells and moves to a new one. So no, I wouldn't see any money until the entire estate goes through probate as the occupant has died.

ColonelOfTruth · 29/11/2022 20:23

Thank you @Spenn .
What if the house they buy is a lot cheaper? Just using their smaller percentage of equity? Could the remaining balance not be - at least partially - passed to me?

OP posts:
Soontobe60 · 29/11/2022 20:27

I assume youve shown the trust paperwork and will to a solicitor? The wording here is key.
In the trust my mum set up, my stepfather can stay in the property they owned as tenants in common 20/80 to heruntil he dies, lives with another woman or moves house (it’s her house).
Sadly, when she died he had to go into a home and now I've got the problem of having to obtain Deputyship in order to sell the property.

Eastereggs1 · 29/11/2022 20:46

It depends on the type of trust and wording. But from your post, usually the trust assets (ie house) would be available to your aunt until she dies.

As trustee you manage the trust and make the decisions, so she can’t just sell up and take the money.

ColonelOfTruth · 29/11/2022 20:47

Thank you @Soontobe60 yes a solicitor is dealing with it but I find them unhelpful in explaining things without the jargon. I’m sorry you have such a stressful situation.

OP posts:
ColonelOfTruth · 29/11/2022 20:49

Eastereggs1 · 29/11/2022 20:46

It depends on the type of trust and wording. But from your post, usually the trust assets (ie house) would be available to your aunt until she dies.

As trustee you manage the trust and make the decisions, so she can’t just sell up and take the money.

This is my understanding and so if she did sell up I could take part of the proceeds for myself and leave her with enough. (She is the other trustee). She says this is wrong and it would all be hers until she dies.

OP posts:
Eastereggs1 · 29/11/2022 20:58

Your aunt is right - sorry I know it’s not what you want to hear! She will be entitled to use the trust assets for her lifetime and then everything will pass to you. You have to look after the money as trustee but you can’t use it for yourself until she dies.

Please do ask your solicitor to put everything in ‘normal’ speak! There is a lot of jargon involved with trusts and it does get confusing. You won’t be the first client to ask ☺️

ColonelOfTruth · 29/11/2022 21:11

@Eastereggs1 Thank you. I am disappointed but good to know. I can’t believe she would go against my mum’s wishes like that 😔

OP posts:
tarmum · 29/11/2022 21:17

My mum had a similar arrangement in place but her trust specifically only allowed my step father to stay in their jointly owned house and if it was sold he had no entitlement to move the capital into another house, it had to go to the trustees of her estate. It is a very complicated legal situation so there is no ‘one ‘ answer it really depends on the wording in the trust/will. It was definitely a lot more complicated that we had envisaged!

ColonelOfTruth · 29/11/2022 21:21

@tarmum It’s so complicated isn’t it? I find even the wording often seems nonsensical and I’m actually fairly intelligent! 😆

OP posts:
ColonelOfTruth · 29/11/2022 21:23

But if she agreed to it then some funds could be released from the sale of the property surely? This is what hurts - this contravenes my mum’s wishes.

OP posts:
AnImmenseDislikeOfPeople · 29/11/2022 21:23

It sounds like a Life Interest Trust but they all differ depending on the specific wording in the Will. Happy to check it for you if you want to send me a private message with the Will clauses (you can obviously redact names, addresses, etc)

Fenella123 · 29/11/2022 21:25

Depends on the wording.
When my Mum died her will had similar provisions re. her partner. I did the probate myself, mostly, but paid a solicitor specifically to talk me through the exact meaning and implications of the trust part of the will. There were a couple of things I wasn't sure of, so it was worthwhile.

ColonelOfTruth · 29/11/2022 21:25

@AnImmenseDislikeOfPeople That is incredibly kind of you. I will do that. Thank you.

OP posts:
AnImmenseDislikeOfPeople · 29/11/2022 21:26

No problem at all.

Quitelikeit · 29/11/2022 21:28

Can you update us on what it means?

curious to know :-)

Iizzyb · 29/11/2022 21:29

Op if the solicitor isn't explaining it to you in a way you understand ask them to explain it again.

A good solicitor will explain it in a way that you, the client, can understand.

If they don't I'd honestly go somewhere else.

It's ridiculous that you can't understand the advice you're being given x

ColonelOfTruth · 29/11/2022 22:01

The more I think about it, I think it may be a moral issue over a legal one. That she has a right to use the asset until she dies but won’t sell up and give me even some of my inheritance as per my mum’s wishes. The house is big and worth a lot so she could easily buy a smaller property and have plenty of money left for herself. I don’t wish to sound greedy - it’s just my mum liked to think I’d have something.

OP posts:
Quitelikeit · 29/11/2022 23:34

Op

the thing is what was the point of your mother drawing up this trust if your aunt can just do what she likes with all the money?

surely if your mother intended for you to have the money sooner then she would have written that in the trust

why not quote some of the lines of the trust here to see if anyone can help?

Linnet · 05/12/2022 00:48

My father in law died and my DH has been told that Fil's share of one of his properties has been left to my DH and his brother and his wife(step mother to DH) has a life interest.

We haven't seen the Will yet as it's all still going through probate but from what I've read the wife has a legal right to enjoy the property until her death then dh and his brother would get their share.

I've also read that the property can be sold but dh's share would be held, presumably in trust, until she dies then he'd get it. We think she'd have to consult DH and his brother before she could sell it, if she chose to.

Once we get to see the Will we'll have a clearer idea of the situation because as others have said it all depends on the wording in the Will.

New posts on this thread. Refresh page
Swipe left for the next trending thread