Trust Beneficiary

anney63

I am 1 of 8 beneficiaries to a trust . The final settlor died in February . It is a matter of just 1 bank account . When can I expect the funds to be distributed and what is the procedure . Nothing is being communicated by the trustees 1 of which is also a beneficery . This surely is not a matter for probate as it is a trust made in 1982 naming beneficeries . I would appreciate any feedback . 

xylophone

The final settlor died in February .

Are you saying that it was a settlor interested Trust (so that the settlors had  the possibility of benefiting under the Trust)? The settlor was also one of the Trustees?

Otherwise, the fact that the last settlor has died would appear to be immaterial?

The Trustees may be dealing with administration relating to the Trust (tax etc)?

Have you contacted the Trustees/the other beneficiaries?

anney63

Thank you for your response
No I haven’t . The trustees haven’t been very helpful . The house which was the subject of the trust at the time two of the settlers were alive but suffering with altzheimers and in a home . They were made trustees without any beneficeries being informed . No worries the funds from the sale could not be distributed until all settlers have died . I am just curious as to how and when this will happen as now the funds are not part of the estate but belong to beneficiaries . Is it just a matter of HMRC closing their side ? . There should not be a tax problem as under the IHT threshold . just no idea how it works and to be honest the two trustees that are left haven’t got a clue . I had to tell them to register the trust with HMRC in the first place . 

Dox

anney63 said:

I am 1 of 8 beneficiaries to a trust . The final settlor died in February . It is a matter of just 1 bank account . When can I expect the funds to be distributed and what is the procedure . Nothing is being communicated by the trustees 1 of which is also a beneficery . This surely is not a matter for probate as it is a trust made in 1982 naming beneficeries . I would appreciate any feedback . 

Without knowing what sort of trust it is and the terms of the trust, that's an impossible question to answer. Could be a few months, could be a few years! Best bet is to get the trustees to seek professional advice without delay; there is no realistic alternative, if (as you say) they don't know what they are doing. There will almost certainly be tax issues to consider, whatever type of trust it is.

Keep_pedalling

anney63 said:

Thank you for your response
No I haven’t . The trustees haven’t been very helpful . The house which was the subject of the trust at the time two of the settlers were alive but suffering with altzheimers and in a home . They were made trustees without any beneficeries being informed . No worries the funds from the sale could not be distributed until all settlers have died . I am just curious as to how and when this will happen as now the funds are not part of the estate but belong to beneficiaries . Is it just a matter of HMRC closing their side ? . There should not be a tax problem as under the IHT threshold . just no idea how it works and to be honest the two trustees that are left haven’t got a clue . I had to tell them to register the trust with HMRC in the first place . 

IHT may not be an issue but CGT probably is. The exact tax position is going to depend on the type of trust.