Winding up family trust

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aroominyork
aroominyork Posts: 2,827 Forumite
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About 20 years ago my father set up a family trust with £30,000 capital with the intention that the income would contribute towards his grandchildren’s school fees. My sister and I were/are trustees. Each year we would withdraw the interest (for school fees), pay the excess tax above that deducted at source and claim a refund from HMRC. Since 2010, when his grandchildren left school, we have ignored the trust completely (no withdrawals, no tax paid, no HMRC returns).

My understanding (I forget where I heard this from) is that when his youngest grandchild turns 25, which happens next month, we can wind up the trust. Can someone please advise me on how to do this? Do we need to put this in the hands of an accountant or can we easily do it ourselves?

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  • Sterlingtimes
    Sterlingtimes Posts: 2,403 Forumite
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    The trust instrument should specify who the beneficiaries would be when the trust is wound up. Unless the trustees wholly understand the trust instrument and whether any tax liability would arise, it would be prudent to consult a solicitor in these matters.
    I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".
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