use of money held in discretionary trust

[worden]

if a trust is set up so that half a house is placed in trust with also capital of 100.000. the other half belonging to one of the Trustees who is also a beneficiary. Can the money in it be used to pay for the upkeep and general bills of the house. Does the money have to be paid out in lump sums or can it be used almost like a current account to pay regular bills.? Would this be challenged as a way of trying to avoid IHT.

thanks for your reply

[Lee Young]

Assuming maintaining the property (or at least the half in the trust) is a legitimate expense of the trust (which I would say it is) then there should not be any problem. The trust should not pick up the whole cost - the other owner should pick up the other half of the costs.