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

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  • jpkeates
    replied
    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.

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  • Ted.E.Bear
    replied
    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

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  • TonyLandlord83
    replied
    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?

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  • theartfullodger
    replied
    Bet Police "know" him.

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  • DPT57
    replied
    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.

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  • jpucng62
    replied
    Is there a Trustee? They might be sympathetic to paying for the damage if he has mental health problems.

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  • TonyLandlord83
    replied
    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.

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  • ash5050
    replied
    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.

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  • jpkeates
    replied
    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.

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  • Interlaken
    replied
    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.

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  • theartfullodger
    replied
    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

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  • TonyLandlord83
    replied
    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.

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

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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.

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