Lifetime property trust

[Squashpocket]

Question regarding a lifetime property trust on my mothers property. I appreciate any advice.

My parents owned their property as tenants in common. When my father died his half of the property went in to a lifetime property trust for my mother. She has the right to reside in the house until she dies. The trustees are me and my mother. I am the beneficiary of the trust.

My mother can't maintain the house or live alone any more, so she wants to sell it to me and then reside in it with me (and my family).

The idea is that she can stay in her home, avoid a care home entirely/for as long as possible and my family have a larger house to live in.

Is it possible for me and my husband to own the property outright given the existence of the Trust? Or will the trust always be in place. I mainly ask because if we bought the property, we would want to take out a small mortgage on the property to fund repairs.

TIA

Bumping for the morning crowd

So the house is already going to be yours when she dies?

In which case why would you buy it??

Also if you move in with her now you'll delay any possible need for care home and if she does ever need a home they can't take it on to account if it's in trust to you anyway OR they'll disregard it as you're living there (as long as you've been there a while, not moved in last week).

Buy in order to be able to raise a mortgage on it to fund adjustments e.g. fixing disrepair and making a more comfortable living area downstairs for my mother

I think the Trust can borrow. Why not find out about this? If the trust is there to avoid IHT, you have to roll with it. If you are getting it anyway, why would you buy it? Look for a mortgage for the trust but it might be a buy to let one. It’s effectively letting to your mum.

Thats's really interesting, we approached a mortgage broker and they said that the only want to do it is for my mother to take the mortgage out in her name. She's 75 and we wouldn't want her to have to do that anyway.

Does it matter that the trust is only in half of the house value ie my dads half. Have I understood that correctly?

@Squashpocket I honestly don’t know the details re trusts but I’ve read they can borrow. Although this trust doesn’t own outright but I guess it could? Plus an over 75 mortgage is effectively equity release. I think I would see a solicitor first to look at ownership. Then ask other mortgage brokers about the joint ownership issue.