TRUST REGISTRATION – deadline looming!
The Trust Registration Service “TRS” deadline of 1st September 2022 for non-taxable trusts is now only a matter of weeks away and all the indications are that there are many trusts that remain unregistered.
It is important that all Trustees understand the need to register a trust, including those that they may not even be aware of!
Which trusts are affected?
The majority of non-taxable trusts are now within the scope of the registration regime.
This includes lifetime Trusts but, importantly, also Trusts set up by a Will when somebody dies.
Will Trusts are often “passive” trusts which can easily be overlooked or forgotten about by Trustees. For example, a Life Interest Trust containing a share of the property. If the life tenant (often the spouse) remains living in the property, it is easy to forget or not realise that there is a Trust which needs to be registered.
What are a trustee’s responsibilities?
Legal responsibility for registration falls on the trustees, and it is a matter for trustees to decide and appoint a lead trustee to do this.
The trustees are required to keep accurate and up-to-date written records of the beneficial owners, including settlors (the people who established the trust), trustees, and beneficiaries.
The lead trustee is also required to update the register within 90 days of any changes/ updates occurring.
What happens if you do not register a trust with the TRS?
There is a legal obligation for trustees to register the trust. If you do not register the trust or keep the details on the register up to date, HMRC may impose penalties and fines for non-compliance.
Please contact us if you would like any advice.