Home in trust to be sold

[Flyonwall]

Hi,

My father passed away in July and left a very simple will. The house which he solely owned was put in trust to my half brother to the benefit of my stepmother.
My brother now intends to sell the house and use the money in conjunction with the money from the sale of his own home to buy a bigger property so his mother can live with his family. He will pay her bills with any left over money and she will live off her pension. He tells me that I will receive the share of my inheritance when his mother dies, as I’m in her will. But she is only 66 so that is a way off and surely she will have no assets?

My thought is that I am entitled to some share of the house if it is sold?

Thanks for any thoughts.

[Sam101]

First of all, who is appointed as Executor of the Will? Importantly, what is the approximate value of the house and your Fathers other assets?

The executor/s has responsibility for administering the will and the appointed Trustees are bound by Trust law to administer the Interest in Possession Trust and your stepmothers asses and inheritance need to be identified and kept for her, separate from your brothers assets. Her interest in Possession needs to be protected.

In view of the fact that there is a Trust, it would be prudent to seek advice from a STEP solicitor to avoid errors.

[Flyonwall]

My step brother is executor too. The house is around £350,000 I don’t think he had any other assets.

[Sam101]

Thank you, but when you say too, are you also an executor or who is the other one. If your father had no other assets to pass on to his wife or son, does your stepmother have any assets that may be past on to you?

From what you have said, your father gifted his assets to your half brother and not to you. Is that correct, or were you mentioned in the Will?

[Flyonwall]

Sorry. I meant my brother is executor and trustee. This is what he told me:
Everything that is not property goes to mum. The house is to be held in trust. The trust is administered by me and mum. The trust must provide a home for mum. The trust may lend money to mum if needed. On mums passing all money in the trust shall be split between you and me.

I think my step mother has 40,000 in savings but my dad had none.

thanks for your time

[Sam101]

Thank you, that helps.

As mentioned, the Trustees have a legal obligation to protect your mother's lifetime interest and if they do move to another property, then the lifetime interest needs to be registered in the Land Registry to protect her interest. This is why it is important to use a Trust Solicitor to ensure that all documentation is correctly dealt with and he can hep with the conveyance of properties.

[Flyonwall]

This is an update on the above issue; I hope someone can help. My fathers house is sold subject to contract. My brother intends to use the money in conjunction with money from the sale of his own house to build a new property for his family and his mother (my step mother). He has told me himself she therefore will no longer have any assets. He believes this is fair because he intends to look after her and her bills until she dies. I think this leaves my stepmother in a very vulnerable position (she is not financially savvy), but also means I will have nothing to inherit (I am in my stepmothers will, my dad insisted.)

My brother isn’t using a Trust solicitor or intending to register the life time interest. What can I do about this?

[des8]

If he is using your step mother's trust fund to assist in the purchase of a larger property, your step mother's interest inthat property should be registered as a tenant in common as she will be a joint owner.
When she passes her interest in the property can then be left according to the terms of her will.

There is of course the possibility that in time to come she will change her will!

What you can do about it, I don't know.

Perhaps atticus or dslippy have ideas

[Sam101]

That is not legal and not what executors are 'charged' with when appointed. He has no right whatsoever to mix your mothers assets with his assets.

The value of your mothers property has to remain in the existing Trust. It is not his, or your mother's but part of a Trust that must remain for the purpose of being a home for your mother.

Your brother could buy a larger property but it would need to be split in ownership, as the part owned by the Trust as a % of the whole. The other part can be in your brothers name. This will have a bearing on finance if a mortgage is involved, as the lenders will need to be informed that part of the new property is legally owned by the Trust and not your brother.

Let us for a moment consider that the new home is double the value, then 50% would be owned as tenants in common with the Trust and your brother. If your mother were to die in 10 years time and the value of the house were 50% higher at that time, then the increased value of the Trust would be what your father intended to be split between you and your brother. So be careful that your brother does not seek to take advantage of the increased value at a later date as the Trust value will increase as an asset of you both equally.

If your brother does not arrange this matter with the use of a solicitor to deal with it correctly, in accordance with the Will then you need to appoint a solicitor to act for you.

Your brother told you he was the executor, but have you seen the Will. It would be more normal for you and your brother to be executors and not just one, so please clarify this.

ADDITION - As I posted as DES8 was also posting, I would just clarify that the property was only owned by the father and the mother had only £40,000 of assets, which she can Will to whoever she wishes, but the property is split between both sons following the mother's death.

[des8]

Just read back

Flyonwall says (post4) " my brother is ...trustee". and confusingly " The trust is administered by me and mum."
Who in fact are the trustees?
What is exact wording of will?

Have you a copy of the will? If not you can get a copy here if probate has been granted: https://probatesearch.service.gov.uk/

[dslippy]

The entire thread is confused and unclear.
It is entirely possible that the brother has no right or power to do what he intends, and he should be told so and stopped.
This needs a solicitor who has seen the actual documents and can advise and if appropriate act before this gets any worse.

[Flyonwall]

I’m sorry if the post is confused. My brother and I live at opposite ends of the country and the information I get is difficult to get. We are almost estranged.

I haven’t seen the will. He still hasn’t finished probate either (Dad died in July last year). He actions seem very strange. His new home will be worth almost 900,000 once finished.

In one of my posts above, I quoted part of an email he sent to me when I asked for a copy of the will. Rather than show me he told me what it said:
“Everything that is not property goes to mum. The house is to be held in trust. The trust is administered by me and mum. The trust must provide a home for mum. The trust may lend money to mum if needed. On mums passing all money in the trust shall be split between you and me.”

I feel very powerless. I will try and contact a solicitor for my step mother’s benefit.

Thank you for all the advice.

[des8]

Check to see if he has yet obtained a grant of probate using the link in post 10.
If he has you can get a copy of the will.

[Flyonwall]

He said he has done probate. But it’s not on that gov site (yet?) He reckons they’ll complete the house sale in 2-3 weeks which seems contrary too.

[des8]

So as dslippy obtain professional advice asap