Wills, trusts, executors and beneficiaries

[Jackson-Walton]

Hi,

So my sister and I are the sole and equal beneficiaries of my late Fathers will. We are also the sole executors.

The will states that the funds from the estate should go into a trust that he set up. The trust was set up with a nominal £10 initially and has not been added to.

The trust was set up with 3 trustees; myself, my sister and Countrywide. Countrywide were the company the trust was set up with.

My sister and I have probate and have an executor account set up at the bank.

My sister and I both have discussed the need for the trust both between ourselves and with our accountants. We have all agreed that we do not need or want this particular trust. Our initial thought was to simply get Countrywide to resign as trusty by majority vote.

Now we are wondering whether we need to actually put any funds from the estate into the trust. Funds will currently go into the executor account first of all. As we are both the beneficiaries and executors, do we need to put that money into the trust to then withdraw it and close the trust?

Any help would be appreciated.

Thanks,

Ben

[des8]

Re: Wills, trusts, executors and beneficiaries

Hi and welcome.

Firstly executors should follow the testators wishes as expressed in the will.
To that end what was the exact wording of the will?

Secondly what was the purpose of the trust?

Thirdly what does the trust instrument say about removal of trustees?

Fourthly does the trust instrument give trustees the power to end the trust?

[Jackson-Walton]

Re: Wills, trusts, executors and beneficiaries

Thanks,

The will states, 'My Executors shall hold my estate upon trust'. 'Subject to the trusts declared above my executors shall hold my estate for trust absolutely.' 'My executors shall in addition to and without prejudice to all statutory powers have the powers and immunities set out in The Schedule of Administrative powers provided they shall not exercise any of their powers as to conflict with the beneficial provisions of my will'.

The trust was set up solely to avoid inheritance tax. At the time the will was written (2006) anything in the trust would not be subject to inheritance tax. As I understand it that changed a few years ago.

There's no more information about the trust and Countrywide and being particularly unhelpful. I suspect that they no longer have a trust as one of their products.

What would happen if we just didn't use the trust, just left it there? There isn't anyone else to gain from the estate, even Countrywide have nothing to gain.

Thanks,

Ben

[des8]

Re: Wills, trusts, executors and beneficiaries

The bits of the will you quote don't refer to the trust that was set up some time ago, so I see no need to use that trust.

As you and your sister are both trustees as well as sole beneficiaries there is no one with cause to dispute your actions, if taken together.