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Pre 2007 £250k Trust
My mother passed in 2002, leaving £250k ‘in trust’ and £75k nil rate (?) she didn’t have any monies but she owned the family house outright. The trust was left to my brother & myself. Unfortunately my brother passed in 2017. My dad passed 4 months ago. I am in the process of getting expert legal advice. The angle being that as my mum had no monies and the Trust is showing as a charge against the house (to this day) would there be scope to argue that the value of the trust (then 50% of the house value) would have risen with either house prices or even just inflation. Or does it simply not work like that. The only fact that makes ‘us’ wonder is that if she had no money to gift, only the property then how else did she leave 1/4m in trust. Any input would be a great relief
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Hi there.
Did your mother put her trust in writing? If so, can you contact the trustees?
Your post suggests the trust is a charge against the property. If so, it will appear in the Charges Register of the Land Registry document and will in essence mean that once the property is sold, the trust funds will be taken from the sale proceeds. An increase in the value of the property would not affect the value of the trust, as the "object" of the trust is £250,000.
So, in summary:
1) The Trust would have to be in writing and registered with the Land Registry - your solicitor should be able to obtain it.
2) In any event, the trust would require certainty of object (what is being given). That appears to be £250,000.
3) The trust will be paid from the sale of the home
4) The increase in value of the home will not have an increase in value of the trust. -
Thankyou that clears things up. The Trustees were my aunties but I don’t think anything was done after settling up the trust. It does still appear on the land registers as a charge against the house.
Thankyou for your input. It’s invaluable at this nerve racking timeComment
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Happy to help
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