If you are a trustee, you will need to consider carefully if you are required to register the trust.
The changes – which came into effect from 6 October 2020 – mean that all express trusts, even if they are not taxable will need to be registered unless they are excluded. All taxable trusts should be registered.
Do I need to register?
The legislation refers to all UK express trusts and a number of non UK express trusts. It is therefore easier to list the most common examples of trusts that are excluded from registering on the TRS.
Trusts that are excluded from registration (albeit not exclusively) include:
- Deceased estates and trusts - those created on death and are distributed within two years. If the trust assets have not been distributed two years from the date of death, the trust must register at that date.
- Trusts for vulnerable beneficiaries – bereaved minors and disabled persons trusts.
- Bank accounts for minors – where a bank account for a child under the age of 18 has been set up by their parent.
- Property ownership trusts – where property is held jointly and the trustees and beneficiaries are the same persons.
- Insurance policies and compensation payment trusts – this is where the policy only pays out on death, illness or disability. Single life insurance premium bonds held in trust are not excluded.
- Charitable trusts
- Pilot trusts - those created before 6 October 2020 and holding less than £100. Any trusts created since that date, no matter the value held are not excluded from registration.
Why has this been implemented?
The reasoning behind this is the “maintenance of accurate and up-to-date information on the beneficial owner” was a “key factor in tracing criminals who might otherwise hide their identity”.
It has long been believed that trusts are used for criminal activities so unfortunately the additional administrative burden on all trusts is now required.
How can we help?
The area has constantly changed and there are many nuances to the registration requirements, we are able to review your trust to check if it needs to be registered and if it does we can request the required information and do this on the trustee’s behalf.
Please contact Jessica Partridge on 0800 84 94 101 or contact us here.