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A minor beneficiary uses a property held by the will trust.
A minor beneficiary uses a property held by the will trust.
We act on behalf of the trustees of a will trust that owns a residential property in London which is rented out. The trust is a pre-2006 accumulation and maintenance settlement.
The property is 70% owned by the will trust and 30% by two beneficiaries in equal shares. One beneficiary is a minor and the other is over 18.
The parents of the beneficiaries are contemplating sending the minor child to school in London and want to use the property to live in. Our understanding is that under the Trustee Act 2000 Part III s 8 (‘Power to acquire freehold and leasehold land’) a beneficiary is allowed to live in the property.
Our questions for Taxation readers are as follows.
- Would the parents have to pay rent to the will trust for living in...
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