TRS registration completed. Concerned about lack of relevant questions.

micklesthwaite

Hello

I have just registered on TRS, as the two years was up at the end of December. Father passed away Dec 23 leaving a IPDI trust allowing my mother to coninue living in their house that they owned as tennants in common. 

I entered the beneficiaries, Mother, Brother and Myself but the form never asked me what type of beneficiary they were, i.e. Mother as interest in possesion and brother and myself as remaindermen. Also there was no question asking about what was in the trust (just father's part of the house in this case). 

Incidently, I did ask a well known AI what to expect on the form before starting and it said I would need to include those bits of information, even giving a list of the exact questions the form would ask. When I pointed out to it that those questions were never asked it started to change its little artificial mind, without recognising it had got it wrong :-) 

A salutary lesson not to be attracted to its brimming levels of confidence in its own knowledge.

Does this registration process match up with other people's experience? 

How does HMRC know the details of the trust if it doesn't ask?

Thanks for any help

M

Keep_pedalling

I am sure that @poseidon1 will be along to correct me if I am wrong, but I don’t think you and your sibling should have been registered as beneficiaries, just your mother. 

poseidon1

micklesthwaite said:

Hello

I have just registered on TRS, as the two years was up at the end of December. Father passed away Dec 23 leaving a IPDI trust allowing my mother to coninue living in their house that they owned as tennants in common. 

I entered the beneficiaries, Mother, Brother and Myself but the form never asked me what type of beneficiary they were, i.e. Mother as interest in possesion and brother and myself as remaindermen. Also there was no question asking about what was in the trust (just father's part of the house in this case). 

Incidently, I did ask a well known AI what to expect on the form before starting and it said I would need to include those bits of information, even giving a list of the exact questions the form would ask. When I pointed out to it that those questions were never asked it started to change its little artificial mind, without recognising it had got it wrong :-) 

A salutary lesson not to be attracted to its brimming levels of confidence in its own knowledge.

Does this registration process match up with other people's experience? 

How does HMRC know the details of the trust if it doesn't ask?

Thanks for any help

M

HMRC does distinguish between taxable and non taxable trusts in terms of the extent of detailed information they require on 1st registration for the TRS service.

For non taxable trusts ( ie those which do not generate intial taxable income/gains or 10 year anniversary IHT reporting), HMRC is happy to accept just basic details of Settlor/Trustees/Beneficiaries. If the trust asset gives rise to no intial taxable income ( as in the case of your IPDI trust), they are not that bothered about the underlying  trust asset - see blog below 

https://www.porterdodson.co.uk/blog/your-guide-to-the-trust-registration-service#:~:text=Trust details – Name, creation date,named beneficiaries & classes of beneficiaries

However if at some stage the trust asset changes to a taxable income producing entity, as occurs in some IPDI trusts where the occupied  property is sold and the life tenant is then entitled to investment income, the trustees must within 90 days of that change, update the register for the trust details that have now become relevant for a taxable trust.  

OP as far as HMRC is concerned you have done as much work as they deem necessary at this time for TRS purposes, but also bear in mind the Form A Restriction process with the Land Registry, I mentioned in your previous post below - 

https://forums.moneysavingexpert.com/discussion/6642430/registering-a-ipdi-trust-advice-appreciated#latest

micklesthwaite

Thanks poseidon1

Could I clarify, was it correct that I entered myself and my brother's details as beneficiaries?

poseidon1

micklesthwaite said:

Thanks poseidon1

Could I clarify, was it correct that I entered myself and my brother's details as beneficiaries?

In your case yes.

You have an actual named ongoing beneficiary ( your mother), together with named contingent beneficiaries on her death (you and brother as remaindermen). 

 I understand  your concern that HMRC is unaware of the distinction between you all based on the  information you lodged so far, but in truth since the trust is not a taxable entity at this point, HMRC have no need to know.

micklesthwaite

I see, thanks for your help.
I will find out about the Form A restriction with HMLR. I suspect my father is still listed as part owner as tenant in common.