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Under a will trust the settlor’s partner was provided with a residence and annuity for the rest of her life. Legacies were also to be paid to grandchildren on their 25th birthdays. The cash funds have been exhausted
I am a joint trustee of a will trust where a residence is to be provided for the deceased’s partner until her death. It is also provided that she should be paid an annuity of £25 000 a year net of income tax. Along the way legacies are to be paid to the grandchildren as they turn 25.
Unfortunately we are now in the situation where the cash ran out three years ago. Only one of the grandchildren has reached 25 and the house is worth some £400 000.
The deceased’s partner is prepared to downsize because the garden is too much for her. However should the capital released be used to pay her three outstanding years’ annuities and recommence these in accordance with the terms of the will? Because the remaining grandchildren are nearing 25 should amounts be held back for them?
On the partner’s eventual...
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