the house has been rented out for 2 years. my sister owns a THIRD and the other 2 THIRDS have been left to me in my grandmas will. should my sister get 1 third of the rent and the rest in trust for me, or can my trustees do what they want with it?
2006-12-26
21:58:12
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16 answers
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asked by
Anonymous
in
Politics & Government
➔ Law & Ethics
the house has been rented out for 2 years. my sister owns a THIRD and the other 2 THIRDS have been left to me in my grandmas will. should my sister get 1 third of the rent and the rest in trust for me, or can my trustees do what they want with it? they are saying all of the rent will be going to pay my grandads mortgage. this is not mentioned in the will.
2006-12-26
22:19:12 ·
update #1
should also add i am 17, my sister is 24. my trustee has lied telling me the rent will go to maintaining the house. she has then said it wilklk be used to pay off my step grandads mortage. they are not giving us a choice. they have already decided! my sistewr is not going to sign her 3rd over to me until i am 21 and can control it myself. they are pressuring her to do this so they get all of the rent.
2006-12-26
22:51:58 ·
update #2
in answer to the muppet that osted last. THE MORTGAGE IS NOT ON THIS PROPERTY. ITS ON A DIFFERENT HOUSE WHGICH NEITHER ME OR MY SISTER BENIFITS FROM.
2006-12-27
00:32:44 ·
update #3
The trust document should state how principal and income are to be dealt with; it should also state the powers and obligations of the trustee. In the absence of any such provision (which would be malpractice on the part of the scrivener (drafter)) state law would apply. Of course if the trust is not part of a will or irrevocable trust but a matter of guardianship (because you were under age when somebody died) then the probate judge has discretion in how to handle this. The money could be made available for your living expenses and education if the judge says so (or in the first case, if that is compatible with the trust document--i.e., the testamentary trust provision in your grandmother's will).
The will is a public document that anybody can read in the probate court clerk's office. (That is true of US states and England.)
The trustee can normally apply rent to expenses (mortgage interest, taxes, repairs and upkeep) before determining profit. Tax rates on estates and trusts are higher than those on individuals (because of the bracket construction) so most wills and trusts try to get taxable profit out to the beneficiary rather than keep it in the trust.
You don't say what your ages are or whether you are dissatisfied with the trusee's arrangement. Or whether the trustee is an institution (they tend to be inflexible, and charge high fees) or an individual with whom you do/don't get along.
2006-12-26 22:43:36
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answer #1
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answered by Anonymous
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Hi Rachael,
This is an area of law we call equity and trusts.
There are very strict rules as to what trustees can and cannot do.
The rent money must be used to pay any outstanding bills on the house and reasonable maintainance that you and your sister are liable for. After this has been deducted your sister gets her third and your two thirds goes into a fund set up for you.
They can only do things with the trust fund that are of benefit to YOU. If they do something wrong they can be made to repay any losses out of their own pockets by a judge. There is established case and statute law on this issue.
You should be provided with a statement periodically so you can see how the fund is doing and how it is being administered.
Unless you benefit from this other property by paying the mortgage they cannot do that from the trust funds. It is illegal.
As trustees in this case they cannot be beneficiaries. that is to say, they cannot profit from the trust.
Trustees can claim reasonable expenses for the work they do on the trust, keep an eye on it. Make sure everything is itemised for ingoing and outgoing items.
Go and talk to an independent trusts law specialist and ask him/her to write to the trustees reminding them of their legal obligations, they could end up in trouble if they try and do what they intend. It is NOT their money, it is YOUR money.
Hope this helps
Good luck
2006-12-27 09:54:11
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answer #2
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answered by LYN W 5
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My father left me a house too. It was in trust until i was 21 and my mum received all rent up until then-for council tax, bills etc..... There is usually an instruction in the will to the trustees as to where the rent should go. My advice to you is this:
Having a house can cost quite a lot of money, there are rates and taxes and unforeseen bills that will occur before you are 21. It would be unfair for your sister to take responsibility for those on her own and your trustees to be out of pocket for having to pay them also. You should draw up an agreement between yourself, your sister and your trustees whereby a certain percentage of the rent is dedicated to the upkeep of the house. The rest MUST be put into trust. This means that the trustees have no way of conning you out of any money for "phantom bills" and unless stimulated in the will-legally all proceeds from the house must be yours....same if it was sold.
2006-12-27 06:08:21
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answer #3
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answered by Bagel the Beagle 1
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if the mortage is for the property you have inhereted then the rent should help pay this and maintain the welfare of the property.
the remainder should go into a bank or something until you come of age (be it 18 or 21, which ever one was set).
however, if the mortgage is not for this property then it should not be paid by you or your sisters rent as it is not your responsibility.
i suggest you and you sister seek legal advice (you should be entitled to legal aid). Perhaps it will be possible to change the trustee to your sister or even an outside party such as a solicitor so that no back handing can occur.
i am 24, and was allocated some money intrusted with my dad, he spent the money and i am still trying to et it back from him with him making claims that i already spent it or it was spent on me even though when i lived with him i had to pay for everything except rent (when i say everything i mean food, clothes, washing, wash materials - towels, soap, toothpaste, toothbrush, sanitry towels, tampons, EVERYTHING) he paid nothing towards me, and actually the house was dun up when i left and they managed to purchase a grand piano - when they were living on benefits....
anyway what i am trying to say is get it sorted before it is too lte for you, i am finding it very very difficult to get back what was stolen from a 'trustee'....
Good Luck. I hope it works out well for you and your sister. x x
2006-12-27 11:22:40
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answer #4
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answered by love HB 2
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the money that you get for the rent of the house , it there is not mortgage on the property, should go for the up keep of the house ie , routine maintenance's house insurance's and lease if it is leased , one all these expenses have been deducted the remainder should then be shared 2/3 for you and1/3 for your sister.
as for paying the stepdads morgage i do not see how you have to pay that , unless it was stated in her will that , the funds from the rent of the propertiy does so, as the part owner of the property you and your sister are responsible for the up keep of the property and it should come up to housing regulations , if there are any defects that may or does cause any injery wil be down to you orand your sister, , i would advise you to spend the money on improving the house iuntill you decide to sell or live in it yourself ,
personally i think that you and your sister are being taken for a ride , does your sister get her share, does not say , citezens advice , as soon as possible find out your rites and do not tell a sole keep it to your self , and when you get the information that you need , you will find out what to do , but do not tell any body what you are going to do , as if the person that is running yoour trust , and is doing any thing wrong wil have time to start covering their mis doings , best of luck mate I hate people that take others for a ride go for it and do nt tell anybody
2007-01-03 16:45:59
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answer #5
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answered by gates_jr_bill 2
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The trustees have an obligation to manage the trust properly and to the best interest of the beneficiary (you) so all rental, after expenses, should go into a bank or saving account for the trust, earning good interest.
As the beneficiary you are entitled to ask questions of the trustees but you cannot demand or influence their decisions. However, if the trustees are family members then I'm sure they have your best interests at heart.
2006-12-27 06:07:44
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answer #6
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answered by gorgeousfluffpot 5
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If your sister is over 21 then she should get her third, and the other 2 thirds should be kept for you. What your trustees do with it depends on the terms of the trust, but they certainly can't do what they want with it - i.e. they can't go and spend it, but they might be able to invest it for you. Usually, trustees will put the money in a high interest savings account or an ISA for you. You can instruct them to do something else - e.g. buy shares, but they don't have to if they think its too high a risk.
2006-12-27 06:04:24
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answer #7
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answered by claudia * 2
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so many legal questions posted here that really do require legal intervention, in this case all estate law is governed by either the law of succession( a will) or intestate succession (no will). the laws are relatively clear cut and stipulate what should happen in the case of dispersing the estate as per the requirements or wishes of the deceased. the trustees as appointed are legally obliged to ensure that any money derived from managing the trust is accounted for, they may not be enriched from administering this trust, at best they may be entitled to a fee for the same but this is set in the terms of the will (codicil). it sounds as though they are fleecing you, contact an attorney, demand an audit of the trust which will determine any fiscal irregularities and then take appropriate action, the court should rule in your favour.
2006-12-27 08:32:55
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answer #8
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answered by Anonymous
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Any profit from the house ( the money left after all taxes are paid, maintenance, and repairs)should be split between you and your sister. She getting 1/3 and your trust account getting 2/3. The people managing your trust account must put the money is some form of savings for you. They are supposed to make an accounting to the judge and your grandmother's lawyers each year about how much money is in your account how much was added to the account and how much interest it earned. If you have any questions about what they are doing these would be the people to see.
2006-12-27 06:13:16
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answer #9
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answered by Anonymous
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I belive that as trustees, your grandparents can manage the trust as they see fit for your benefit.
If I have understood your circumstances correctly, i assume that you are living with them and as a result the rent is paying for the roof over your head.
This is morraly incorrect, however depending on how the trust has been set up, may be legally correct.
The best thing to do is to talk to a solicitor who should be able to look into the trust and clarify the situation for you.
2007-01-02 04:57:36
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answer #10
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answered by trick 2
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