Parent's house in a Trust. To sell it or to rent it after parent's death

[RoseWinter]

Hi all,

Wondering if anyone is able to give some clarity of something.

My dad's house is in a house protection trust. Me and my 4 siblings are beneficiaries with myself and 2 others as executives. One of my siblings thinks we should keep the house in the event of death and rent it out, so we have got the home in the family still in case one of us ever needed it. Eg: splits with a partner, our own house burns down, etc. But we are confused with how splitting the profits between us all would work? Would we all need to agree to be landlords and have to do our own self assessments. Or can we nominate one of our siblings to be a landlord deal with all the self assessment stuff and divide the profits between us all?

Alternatively most of us feel that we should just sell the home thought it does hold a lot od sentimental value for us all. Can anyone shed some light please?

See a solicitor who specialises in Trusts.

I think if the house is between 5 beneficiaries it would be very difficult to keep it and rent out.
Options are for 1 person to buy everyone else out or -
Sell straight away and split proceeds according to the will.

So the executors are for the will? …..but who are the trustees? …..you will have now had to register the trust with HMRC ( as per the new rules) ….so the primary trustee will have received government documentation of this ( I’m saying this as I have had a letter from hmrc to confirm I am trustee)

But what happens about the inheritance if one sibling needs it? Do the others still get an income? How long for? What about if two siblings need it? Do they share and pay rent to the other three? Is the one sibling struggling to let go or is their relationship a bit uncertain?

Selling is the most sensible decision to make.

With that many adult siblings it's just too messy. Sell up and split the proceeds. Some of DHs siblings stopped talking after house was left to 5 adult siblings and there wasn't a clear decision to sell up or rent out.

If you rent it out you can't easily move back in if you need to. Plus being a landlord is not as easy as some people assume. There are quite a lot of rules and regulations that you need to follow. With so many people involved I think selling up will be a lot easier.

Also if five own a house, they are not eligible for First Time Buyer discount if they go on to buy their own property
Also opens up questions about second home tax...
Also CGT
DM left her house to 8 family members. We were told that just one could force the sale for the other seven at any point. Best to sell up.

Thanks all,

This is all sorted now 😊

Did they put it in a trust so you wouldn’t have to pay the inheritance tax that should be due? This really should be illegal