Sale of house subject to a life interest trust, what happens to any surplus?

[Crabcake]

Hi, my father has left his house to my sister and me, but has given our stepmother a life interest. He has left the residue of his estate to our stepmother. Brother and I are trustees. A clause in the will provides that, if she makes a request in writing for us to sell the house and buy her another suitable dwelling with the net proceeds, we shall do so. We would hold that dwelling on trust.

The will also says that, if there is any surplus money after the sale and purchase, we shall treat that surplus as an immediate accredition to our father’s residuary estate.

What does this mean please?

Would the surplus money pass to our stepmother as if it was part of the original residue?

Or would it pass to my brother and me?

[Pezza54]

IMO any surplus money should be put in trust alongside the new purchased property.
The trustees duty is to protect the value of the asset in trust.
If your stepmother wishes to move to a much cheaper property and then received the surplus money the trust asset would be significantly reduced and you and your brother would lose out.
Your father's intention was to ensure your stepmother had a place to live for the rest of her life and if she needed to move she could. He also wanted you and your brother to eventually financially benefit from the property held in trust.

[atticus]

What does the will say is the destination of the residue? That is where you will find the answer to your question.

[Pezza54]

If all executors and beneficiaries are in agreement, a deed of variation can be made to a deceased's will up to 2 years after the date of death.
As she is a beneficiary your stepmother's agreement is necessary to make a deed of variation to your father's will provided he died less than 2 years ago.
You and your brother might want to consider changing your father's will regarding the statement that any surplus money should be credited to the residuary estate.

[Crabcake]

Apologies - the will gives our stepmother a right to reside, not a life interest. However, I don’t think this affects the issue of accretion to the residuary estate.

Thank you for replies so far.