Anyone know anything about life interest trusts?

[paulguitar]

My friend—let’s call him Dan—is a trustee for a life interest trust which ended when his mum died. The house named in the trust was sold, and the portion of the proceeds held in trust now needs to be distributed. The other trustee is uncooperative, and (this has been going on for months) Dan has been unable to make any progress in paying the beneficiaries. Does anyone know if 1) the proceeds can be paid to the beneficiaries without the cooperation of both trustees?, and 2) if an uncooperative trustee can be removed?

[TownIdiot]

It will all hinge on what the trust documents say.

The trustee will need to understand these before doing anything - so if they aren't confident they know the trust rules then they should see an expert for advice.

Nobody can give definitive advice without knowledge of these documents.

[martinbiz]

One for the finance thread I would think

[paulguitar]

The initial message was deleted from this topic on 20 February 2025 at 14:17

[paulguitar]

TownIdiot said:

It will all hinge on what the trust documents say.

The trustee will need to understand these before doing anything - so if they aren't confident they know the trust rules then they should see an expert for advice.

Nobody can give definitive advice without knowledge of these documents.

Thanks.

martinbiz said:

One for the finance thread I would think

Thanks, I have posted it there.

[JonPH]

The trustee may needing reminding that he presumably has to act in the best interest of the trust and/or beneficiaries.

It doesn't sound like that this is the case, which can have significant ramifications.

It may be that he should then consider retiring, but the trust deed may require two trustees (and may need two anyway if holding UK property).

[TownIdiot]

As per the other thread the trust documents will say how to remove a trustee.

The best solution is to address what's causing the issue.
Or persuade them to resign

Dan would also need to sure he is in the right