Can a beneficarie of house in trust reside there?

[Mark300zx]

Before it belongs to him in entirity or does he have to pay rent?

[Simpo Two]

Up to the generosity of the trustees I'd say.

[Mark300zx]

Simpo Two said:

Up to the generosity of the trustees I'd say.

Wouldn't there be market rent and tax to pay?

[Simpo Two]

Mark300zx said:

Wouldn't there be market rent and tax to pay?

As it would be occupied somebody would need to pay council tax, but whether the trustees want to charge rent, full or otherwise, is up to them and their responsibilities. For example, if I was the trustee, I could think (a) you're a bit strapped and need a roof for a few months and I like you, so kip for free, (b) I hate you so you can't live there at any price, (c) anything in-between. At least, that would be my approach

Anyone been in this exact position as a trustee?

[ellroy]

Trustees have a legal obligation of care to all beneficiaries, and that may mean next generation, therefore they should be getting a return on the trusts assets. So yes, there should be rent paid, if it is or not is a separate issue.

[Mark300zx]

ellroy said:

Trustees have a legal obligation of care to all beneficiaries, and that may mean next generation, therefore they should be getting a return on the trusts assets. So yes, there should be rent paid, if it is or not is a separate issue.

Thank you, may I ask what the separate issues would be?

[ellroy]

Family run trusts, with family member resident and family as trustees. Can easily see situations where they don’t charge rent even though they should be.

All good unless they fall out and reach for the lawyers.

Which does happen, increasing part of legal work is contentious wills for example, not that far removed kind of situation in the round.

[Eric Mc]

Mark300zx said:

Simpo Two said:

Up to the generosity of the trustees I'd say.

Wouldn't there be market rent and tax to pay?

Not obligatory. But if the house is provided free or at less than market rent, then the recipeint of the benefit of the use of the house will be taxed and that tax will be administered under the PAYE system too. It's a form of Benefit in Kind.