Capital value of property held in trust

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  • #31555
    Anonymous
    Guest

    Our customer is state pension credit age.

    He benefits from the rental income of a property which is held by the trustees on trust for the duration of his life. He is entitled to the rental income but will not benefit from the capital value if it is ever sold. The trustees would benefit from the sale proceeds.

    is the capital value disregarded?
    and is the rental income also disregarded because the claimant is state pension age?

    #88241
    Anonymous
    Guest

    Further to this post:
    The only other information i have is that the property was purchased following a settlement . (i have no details about the settlement it self, it appears to date back to 1980)I Have seen legal document that confirms a conveyance was set up in 1988 where the property was conveyed to the trustees of that Trust. One of the trsutees is a relative to our claimant but i am not sure who the other trustees are .
    the conveyance states that if the property was sold the capital and the profits from any sale would be held by the trustees of the settlement. There is a covering letter from a solictor confirming that our claimant is only entitled to the income from the property and is also responsible for any repairs .

    #88242
    chris harvey
    Participant

    I think your claimant is not receiving income from a property he is receiving income from a trust. If it is received regularly it falls to be classed as income (rather than capital). I am not sure if this sort of income counts at all in pensioner cases because income from trusts is not listed in reg 29 (meaning of income). Even if it were there are generous disregards of income from discretionary trusts in schedule 5.

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