Can you rent out a house held in trust, i.e for profit? (UK)?

Question

My wife divorced in 1993 and agreed in the courts / land registry he would stay in the property til he dies, at which time it would be sold and divided between the kids. He has now remarried, moved to Thailand and let the house out for £200 a week. Can he do this? And is there anything to be done?

Answer 1

Hi Richard,

if the house is held as part of an express trust, the property must be held by the trustee for the benefit of the beneficiaries. Renting it out is not a problem as long as the profit is invested or saved for the beneficiaries.

If the trustee is keeping the money he could be made to repay it out of his own pocket. You need to find out where the rent money is going. The trustee must declare this and all expenses and costs must be justified.

You need to contact a solicitor who specialises in equity and trust law.

Hope this helps

Good luck

Answer 2

It really does depend on exactly what the agreement was and what the court said at the time : if he was given a life interest in the property then he is entitled to do this : if he was merely given a right of occupation then he may not be.

Answer 3

Depends on the Terms of the Trust; get a copy and read them. If he is allowed to do it, is there a stipulation that any rental gain is shared ?

Am intrigued that your wife is a "he" but that's your affair, I guess, and doesn't affect the question.

Answer 4

You have to look into the agreement and see what it really says and then seek legal advice.
Good luck

Answer 5

Yes you can to help pay for its upkeep if nothing else