Why has the insurance not been paid?

Updated: Oct 14, 2019

Many wills leave people with a right to occupy a property. Attached to the right to reside is often an ongoing responsibility for repair, maintenance and insurance. At the time of creation everyone gets along, has capacity and it could not be more perfect but what happens if things go wrong.


Trusts which only contain properties, without the foresight for a cash reserve, run the risk of having significant trouble in the future. Those with the right to reside made become ill and unable to manage the repairs or themselves, they may run out of funds, a tenant could give notice with no new tenant being found.


If something goes wrong the responsibility for maintaining the property rests with the trustees, a job that will be made even harder if there is no cash reserve to call on. Negotiations to solve the problem may be unsuccessful if those ultimately receiving the property refuse to help. An uninsured property is the worst of all worlds!


So, in order to prevent problems arising make sure you leave a capital reserve within any property trust for the what ifs. This reserve can make sure insurance is paid, repairs are carried out and standards are maintained. Also leave a letter of instructions to your trustees about what you want to happen in certain circumstances. These are your wishes after all why not make them crystal clear!



Authorised by CILEx Regulation for

Probate Authorisation Number 2168365

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