Trust fund set up with a Life Assured policy....HMRC trust registration.

cambb

Hi,

My wife’s grandfather set up a trust back in 2004 for my 2 daughters against my wife’s life insurance? The policy has been passed between various companies and now sits with ReAssure. We are trying to cash it in as one is about to buy a house and they are insisting that it is registered with HMRC TRS service. We have received the surrender value from them and I plan to apply for exemption from registration under the below HMRC rule: -

The general position is that trusts holding policies with surrender values can remain excluded from registration under Sch3A(4) until such time as the policy is actually surrendered. If a policy is surrendered and the cash sum is retained in the trust, the trust would be required to register from that point.

Is that a valid exemption not to register it?

The cash will be not be retained in the trust and given to my 2 daughters.

Thanks  

Reaper

I have no special knowledge but from reading the rules [link] I believe you are correct.