Trust Law Question

[InNeedOfHelpP]

Hi All

First post, sorry to jump in like that but I only found you as I was looking for an answer to it!

My question is where a Will sets up a Trust and states that the Trust be held until beneficiaries reach the age of 25, can the beneficiaries apply to have that this changed. ie: Where they are both 18 can they apply to realise or complete(not sure or correct term?) the Trust. I thought that it would have to be 25 as there is no suggestion of any issue with the Will of the deceased's capacity etc.

Any advice and assistance would be very gratefully received, thank you for reading.


INOH

[des8]

Re: Trust Law Question

Hi and welcome
I recall that a trust can be wound up early if all beneficiaries are in agreement, have legal capacity and an absolute title to all the trusts assets.
How? don't know, but there could well be tax implications.
Sure someone on this site will have more detailed information

[InNeedOfHelpP]

Re: Trust Law Question

Hi and welcome
I recall that a trust can be wound up early if all beneficiaries are in agreement, have legal capacity and an absolute title to all the trusts assets.
How? don't know, but there could well be tax implications.
Sure someone on this site will have more detailed information

Thank you des8, there is a dispute currently regarding one of the properties that they say is a Trust property but I claim is not and is the marital home so it sounds like they would have to wait until that is decided.

[MissFM]

Re: Trust Law Question

Hi INOH ,

A couple of relevant links:

http://www.tax.org.uk/tax-policy/Top...tcreatedbywill

http://lexisweb.co.uk/sub-topics/trust-termination

but IMVHO you would be wise to consult a solicitor specialising in this particular minefield, especially if the Trust's assets are disputed

HTH x

[enquirer]

Re: Trust Law Question

As MissFM points out, trusts are a minefield, particularly if there is a dispute, so professional advice is advisable.

[InNeedOfHelpP]

Re: Trust Law Question

Thank you but paying for advice really isn't an option I am afraid.

As there is a property in the Trust that is subject of proceedings to decide ownership I am not sure they can do it anyway as
Saunders v. Vautier I believe states that 'the beneficiaries must be absolutely entitled to the trust property.'

[enquirer]

Re: Trust Law Question

Thank you but paying for advice really isn't an option I am afraid.

Many solicitors will do a free 30 minutes advice, so it would be worthwhile asking around. I would imagine that the prospect of a trust case would have them falling over themselves.

[des8]

Re: Trust Law Question

It may be possible to liquidate those properties where there is no dispute, and distribute those assets.
This would leave the remaining property in trust.
As everyone is advising tho' you really need professional advice on this matter, and presumably the trust would pay the costs incurred by trustees. If the beneficiaries really want their inheritance early, they will have to pay the cost :tinysmile_cry_t:

[InNeedOfHelpP]

Re: Trust Law Question

Thanks des8. I think I'll suggest the liquidating of the property that is not in dispute, especially as it is empty so losing money month by month.

[InNeedOfHelpP]

Re: Trust Law Question

This is the excerpt from the will, if that assists:

'I give all the residue of my estate and the property over which I have at my death any general power or appointment to my trustees on trust to sell call in and convert into money such parts as do not consist of money but with full power to postpone doing so for as long as they see fit without being liable for loss (and such estate and property and the property it currently represents it is referred to in this will as "the Trust Fund") and to hold the Trust Fund on Trust absolutely for such of them (name) and (name)both of (address) as shall survive me and attain the age of twenty five (25years) and if more than one in equal shares.'

[des8]

Re: Trust Law Question

Sorry, but I'm not qualified to advise in depth.
I know that trusts can be varied, but the implications, especially vis a vis the tax position for 18-25 trusts, are complicated.
The trustees should be taking professional advice, as their responsibilities are quite onerous.

[Crazy council]

Re: Trust Law Question

Are the trustees. Solisitors... if so. Be carfull..after some recent experience i would never leave solisitors as trustees for under 18 yolds. If they are. Keep an eye on there chargez and make sure there not encoraging any dispute. When you say court action going on. Do you meen the trustee is applying to the court for direction in relation to a property. Also... it will be a she load cheeper ifbthe beneficarys arainge the sales of any properties.