Ending a Trust
How do Trusts end?
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.
Timbrell Law Solicitors are experts at winding up trusts and ensuring the assets are transferred to the ultimate beneficiaries with as little hassle as possible. Whether you need support to record the trustee decision in a deed or advice on the tax implications, we are here to help. We are available on 01242 420744, or you can use our contact form to arrange a free callback at a time to suit you.
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Still Looking For More Information?
If you need more information about trusts or trustee roles, then why not read some of our related blog posts for additional helpful insights.