Property in a Discretionary Trust

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I settled a property, together with shares in a business into trust a few years ago. I have now started to live in the property again with a donee of the trust.

I understand that I may fall foul of the gifts with reservation of benefit legislation.

What does this mean for me, and can I get around this by paying rent to the trust for the use of the property?

[Simon Sweetman]

You are likely to be caught by the pre-owned assets legislation which comes in from 6 April 2005. If you are (basically if the annual value of your occupation of the property exceeds £5000 a year) then there are a number of options : if it is important to keep the property out of your estate, then paying a market rent is one of them.

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Thanks for your thoughts Simon.