How to end a trust depends on the type of trust. 

Some trusts naturally end as a result of specific event occurring, such as a beneficiary reaching the age of inheritance or on the death of a life tenant.  Other trusts, such as Discretionary Trusts, usually end when the trustees exercise their powers to bring the trust to an end and distribute all of the assets.

When taking steps to end a trust, trustees should consider:

• Recording their final actions in trustee minutes.
• If discretionary trustees are exercising their powers to end a trust, they will likely need to formally record their decision in a deed.
• Checking that all outstanding trust liabilities and expenses have been settled.
• Reporting and paying any outstanding income, capital gains and inheritance tax to HMRC.
• Preparing final trust accounts and having these agreed by the beneficiaries.
• Checking and complying with the formalities for transferring the trust assets to those now entitled.

The terms of the trust, its history, current assets and the circumstances of the beneficiaries may require further steps to be taken.  It is prudent for trustees to seek advice to ensure the trust is brought to an end legally and in the most tax efficient manner.