Trust registration service and life interest trust.

ahfat41

If you have a life interest trust which holds only a share in a property 50% and the Trustees are made up of surviving spouse and two adult children as beneficiaries, Immediate post death interest trust, does such a trust have to be registered on the TRS or does it fall under the exclusion of  A trust of jointly held property where the trustees and the beneficiaries are the same persons? If I understand correctly yes it is only excluded from a 2 yr period from the date of death and need to be registered afterwards.  I am sure a lot of our readers are not aware of this new rules introduced in October 2020. Does one need to consult a solicitor to register such trust? I have such Will and am just wondering whether  it is worth the hassle and get it rewritten whilst am still alive? Thanks

Keep_pedalling

You don’t need a solicitor to register the trust, the lead trustee can do it on line. I would only get the will changed if the reason to put the clause in is no longer relevant. 

ahfat41

Thanks it’s good to know. I saw a solicitor advertising £270 + vat to register. Hope it is simple to register online. Will need to update the executrix of my will if she wants to do it herself or pay a solicitor. Knowing her she will let a solicitor do it.

RAS

Suggest to your executrix that she comes on here for help when she needs it? By and large people can DIY and it's a LOT quicker that way. Lots of queries here about them taking 12-24 months.

Nothing to stop her going to a solicitor if she needs advice to understand what the will means, or how to deal with a particular problem. 

Keep_pedalling

ahfat41 said:

Thanks it’s good to know. I saw a solicitor advertising £270 + vat to register. Hope it is simple to register online. Will need to update the executrix of my will if she wants to do it herself or pay a solicitor. Knowing her she will let a solicitor do it.

Is there a reason you only one executor? It is better to have 2 or 3 in case anything happens to one. We have 3 each other and our adult children.

areader

HMRC's Trusts created by will section at https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23020 would seem to be applicable to the original poster's situation. Although I don't think the Will Trust and registration would come into effect until after their death.

Looks like they've recently updated some guidance and the new rules are starting to get a little bit of publicity (articles in the FT and Telegraph in the last week). That's why I'm here. Seems I need to register a property owning non-tax paying Will Trust now, urg, hassle. 

Registration can be done at https://www.gov.uk/guidance/manage-your-trusts-registration-service

"The deadline for the majority of express trusts to be registered on the service is 1 September 2022 with the onus on trustees to register trusts through the HMRC portal by the deadline."

https://www.actuarialpost.co.uk/article/only-153-thousand-trusts-registered-with-hmrc-20742.htm