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Deducting money from share of estate

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  • Deducting money from share of estate

    My mothers partner lived in my mums house with no payments in rent or mortgages, even though when she was alive he paid rent, but there was no tenancy agreement, and has in general been difficult to handle. He is due to get a 50% interest in the house as the beneficiary of a living trust, but the trust will only be funded after the house is sold, so that he can buy a smaller property for himself and it eventually goes to the grandchildren.

    He is also due to also get a lump sum payment of a considerable sum. He is paying the bills for the house himself, but I’ve had questions from other beneficiaries about the lost rent revenue.

    My question is are we obliged to the other beneficiaries to charge him rent? Their argument comes from a fairness perspective and to maximise the value of assets.

    can this be backdated and deducted from his share of the estate before it is distributed?

    very confused and just want to tie up the estate so any help is appreciated
    Tags: None

  • #2
    Hi
    Welcome to LB

    Have you been appointed one of the trustees?

    A living trust can state what happens to the assets in the trust following the trustor's death

    The trust may state property in trust should be sold after death of the trustor, provide a lifetime interest for a person to reside at the property until their death, limit the time before the property must be sold, what happens to the proceeds of the property sale and so on.

    Are you able to post the relevant wording in the trust regarding the property with personal info redacted?



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