Trust renovation

11 June 2013

Issue: 4406 / Categories: Forum & Feedback

Some years ago, a mother inherited a property and placed this in trust for her daughter. The mother and her husband are elderly and now wish to sell their farm and live in the trust property, which requires substantial modernisation

A husband and wife in their 70s run a farming partnership. In 2002 the wife put a cottage she had inherited into trust for her daughter. The parents are now in poor health and are about to sell the farm.

They would like to live in the cottage owned by the trust but want to carry out £200 000 of renovation work before they move in.

The clients understand the need to pay full market rent for the property because they are excluded from benefitting under the trust. The current tenant is paying £18 000 per annum in rent but the building work to be carried out might mean that the property could attract a higher rent on the open market.

The trust does not have the money to pay for the renovation work but the parents are happy to pay for the work out of...

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