Running Costs of a Life Interest Trust

[Orion]

Can anyoneplease give me some idea of the likely costs involved of 'running' a Life Interest Trust with a value of about £100,000 for a £150,000 property with no other assets involved. It relates to siblings giving a life interest to another sibling to allow him to remain in the property.

The real concerns are the annual and ocassional trust costs (e.g. trustee/accountancy fees and taxes to pay) as there is a real question mark over the how these elements would be paid for.

Thanks very much.

[Lee Young]

The honest answer really is "how long is a piece of string?".

Most advisers will charge on a time basis according to chargeout rates of their firm. A life interest trust with a property in it, and therefore presumably no income being generated, and therefore minimal annual income tax compliance kept at a minimum, should not use up much of the advisers' time. If you imagine greater activity after the trust is set up and the property transferred into it (or income is generated and therefore annual tax returns are required) you would be looking at a few hundre pounds each year at least for that work. BUt as I say the more you ask of the adviser then the more it will cost and therefore you need to know the chargeout rates (and these vary from region yo region).