Suing tenant who has income from trust fund (major damage to property)

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    Suing tenant who has income from trust fund (major damage to property)

    Our ex-tenant has caused major damage (perhaps ~£30k worth) to a property, which obviously won't be covered by the deposit.
    The tenant has destroyed walls, all the appliances, flooring etc. We've been told by the letting agent that this is the worst damage they've ever seen.

    The tenant does not have a job, however the tenant does have regular income from a trust fund set up by the family.

    Would anyone here be able to advise on whether the tenant's trust fund, or the income the tenant obtains from it could be claimed by us to cover the damages? I'm not sure whether it is possible to get any kind of 'attachment of earnings order' on a trust fund?

    I'd be really grateful for any advice.

    #2
    Thats absolutely appalling. If you have landlord insurance which includes legal advice, they should be able to advise you?

    Comment


      #3
      We're hoping not to have to claim on insurance as that would put up the premiums.
      Good tip on the legal advise service from the insurance - thanks.

      Comment


        #4
        Really sorry to read this, terrible.

        Do everything you can to get court judgement then CCJ so ensuring any landlord with enough brain cells to do credit check sees red flag.

        Sue him (trust fund has no contract with you) then I guess the tricky thing would be to extract ££ from his income. With employed people that's done by "attachment of earnings" but doubt/not sure can be done with trust.

        Read your insurance policy VERY carefully. You are likely obliged to inform insurer even if not making claim. Carefully worded email should do it.

        Was agent not inspecting and sending you regular reports?

        Perhaps it would be helpful if somehow (careful) his family got to hear about things

        What landlord references were there for him?

        Good luck
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          I think going for the agent might be worthwhile as well. Did they inspect or did all this damage all happen in a space between inspections?
          You may have a chance with tenant - sue him. He can't really declare bankruptcy if in receipt of trust fund money.



          Freedom at the point of zero............

          Comment


            #6
            The liklihood is that there's a reason that the tenant's money is held in trust - possibly to keep it from being claimed against a debt.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              He can declare bankruptcy if he's got a trust fund income, just like someone employed can. If he's got debts more than assets, the trust fund won't count towards assets, then he would be insolvent.
              But the receiver would likely apportion some of the income to repay debts.

              Comment


                #8
                Thanks for your replies. The damage happened slowly and the agent did do inspections, however due to COVID the eviction process was very very slow. The tenant had some mental health issues which we believe were compounded during lockdown, and I think that lead the tenant slowly destroying the flat. e.g. the tenant would use a hammer to make huge holes in the wall.

                Comment


                  #9
                  Is there a Trustee? They might be sympathetic to paying for the damage if he has mental health problems.

                  Comment


                    #10
                    This would be criminal damage and would need to be reported to the Police. Prosecutions for criminal damage can and do happen against people with mental health problems.

                    Comment


                      #11
                      Bet Police "know" him.
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment


                        #12
                        Yes we have a crime reference number for this, and we know that he has been visited by the police many times before. Not sure if that helps with reclaiming any money?

                        Comment


                          #13
                          it looks like getting a third party debt order from a trust fund is a complicated question, but it's not impossible, depending on the circumstances.
                          https://www.1ec.co.uk/single-post/20...tionary-trusts

                          Comment


                            #14
                            The issue you will face is that while the law is not happy with people who try and hide their own assets in a trust to make it claim proof, if the trust is set up by someone else in order to fund a lifestyle, while keeping the main funds free from claims, that's pretty much exactly one of the the purposes of a discretionary trust.

                            It would have to be aligned with the wishes of the trust creators for the trustees to be able to use the trust fund to pay the debt. Which might be the case, if the claim means that the beneficiaries possessions might be taken from them in order to pay the debt, the fund paying off the debt might be an appropriate use.
                            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                            Comment

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