Issues to consider when holding property in trust

Trustees have general and statutory duties which require properties held in trust to be maintained, there may also be obligations to ensure that properties are adequately safe. 

Where a beneficiary occupies property held and there is no formal tenancy agreement, there is no specific duty for trustees to ensure the safety and wellbeing of the beneficiary.  However, in many circumstances best practice and a prudent approach would be to treat the beneficiary as a tenant and comply with the additional statutory obligations imposed on landlords.

If a formal tenancy agreement exists, trustees must comply with statutory duties imposed on landlords:

Repairs and maintenance 

Maintaining the property structure, exterior, fixtures and fittings.

Insurance

The property should be appropriately insured, ideally the trustees will obtain and pay for insurance out of the trust fund and the policy should be in the name of the trustees.

General property duties

Asbestos – Checking whether asbestos is present in a property, assess any risk and have plans in place to manage risk.

Fire safety – Duties include taking general fire precautions – carrying out and reviewing risk assessments. Checking all furniture and furnishings are clearly marked to show that they meet the necessary fire resistant standards.

Gas and electrical safety – Every gas appliance needs an individual Gas Safety Certificate. An annual gas safety inspection must be carried out by a Gas Safe registered engineer within 12 months of installation and checked annually thereafter. All electrical installations in rented properties should be inspected and tested at least every five years and a copy of the report provided to the tenant.

Smoke and CO2 alarms – Landlords must ensure that there is at least one smoke alarm on each occupied floor of the property. There must be at least one carbon monoxide alarm in each occupied room which contains a combustion appliance (excluding gas cookers). Smoke and CO2 alarms must be repaired or replaced once reported and found to be faulty.

Energy Performance Certificates (EPCs) – Landlords must order a certificate for tenants before a property is let out and make this available to them. EPCs for rented property must have a minimum rating of E.

Windows blinds/curtains and cord safety - Ensure all window blind and curtains with cords or chains installed are fitted with a compliant safety device to minimise the risk of injury. These regulations do not apply to blinds and curtains which were installed prior to 2014.

This is not an exhaustive list, if you would like further advice please let us know. We can supply with you a full and detailed briefing.

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