Family asset protection trust

poseidon1

Keep_pedalling said:

Yorkie1 said:

madbadrob said:

Yorkie1 said:

If the pilot trust already has a nominal £10 in it, does ripping up the will in relation to the property bring the trust to an end without any other trust documents needing to be closed down?

Is there a minimum value that the pilot trust should hold, before it becomes effective? 

The trust wouldnt be closed by the documents being torn up but the monies from the house etc on death would then not be pushed into this pilot trust.  Well thats my uneducated take on it all

Rob

Those were my thoughts too. Followed on by wondering whether there is a de minimis level for a trust's contents before it needs to be registered with HMRC and tax reports done etc etc ... (i.e. whether the trust with only £10 in it, needs to be treated in the same way for registration / tax as a much larger trust)

Pilot trusts created before 6/10/20 which hold no more than £100 do not need to register, if created after that date they need to be registered regardless of how little they hold.

https://www.gov.uk/trusts-taxes/registering-a-trust

The other question is where can you possibly hold such a small amount of money in trust? Where is the OP’s parent’s trust money. 

Typically these trusts were established with a £10 note attached to the trust document (no point having a trust bank account for such a nominal sum).  If that cash has since disappeared, its questionable whether the trust has a continued  exsistence without an  identifiable trust fund. However, that does not obviate the necessity of getting rid of the current wills ASAP. Hopefully the OP has already succeeded in comvincing the parties in this regard.